JOHANNESBURG - After a cautious start to the session ahead of the pivotal GDP release, the rand applauded a better-than-expected Q3 print according to NKC Research.
The local unit cheered the 66.1 percent q-o-q jump – beating expectations of 52.6 percent q-o-q – as the industrial sector rebounded after a dismal Q2. With regard to the external backdrop, the tug of war between vaccine optimism and surging infection concerns continued to play out, while an added jolt of US political and fiscal risk was thrown into the mix as Senate Majority Leader McConnell has also pushed back against the bipartisan stimulus deal.
The US event calendar was light, while the blackout period surrounding the December 15-16 FOMC meeting began this past weekend to keep the speaker calendar thin. There was no market reaction to the data releases in Asia, which included a better-than-expected Japanese Q3 GDP, but disappointing October Japanese household spending and cash earnings data.
The rand strengthened, dropping below the R15 against the dollar threshold.
South African bourse
The local bourse lost some ground on Tuesday, with the All Share index dropping 0.62 percent during the day’s trading. While the financials index (+0.60 percent) turned in another good performance, most other indices lost ground relative to Monday. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.79 percent) traded higher.
Brent crude oil
The Brent oil price traded flat yesterday after losing some ground on Monday. At the close of local trade, the Brent oil price was quoted at around $48.76pb. Crude prices traded weaker during Asian trade this morning.
BUSINESS REPORT ONLINE