Compiled by Dhivana Rajgopaul
JOHANNESBURG - The South African rand extended gains as concerns surrounding the US economic recovery fed into a softening greenback. according to NKC Research.
As we mentioned previously, we believe that the dollar is on the cusp of a multi-year policy-induced downward swing. The US economy is at a critical juncture in its recovery, complicated by election and fiscal risks. Following a 5.0 percent annualised plunge in Q1, real GDP contracted by a record 33.0 percent annualised in Q2. Combined, these represent a 10.6 percent peak-to-trough contraction which ranks third among the sharpest contractions of the past century. Importantly, after a rapid first phase of recovery, the economy has now entered the second phase of its rehabilitation with much less momentum. At the close of local trade, the rand quoted 0.56 percent stronger at R17.13/$. Expected range today R16.95/$ - R17.30/$.
South African bourse
The JSE All Share (+0.58 percent) ended higher heading into the weekend on Friday, led by gains in large technology (+2.83 percent) and financial (+2.67 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.05 percent) traded on the front foot.
Brent crude oil
The Brent oil price fell flat at the end of last week as concerns persist over the global economic recovery, amid renewed coronavirus lockdowns in certain parts of the world. At the close of local trade, benchmark Brent crude futures quoted 1.96 percent lower at $44.13pb. Crude prices traded dipped during Asian trade this morning.
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