Compiled by Dhivana Rajgopaul
The South African currency failed to follow through on a strong start to the week, retreating somewhat to pause a two-day rally according to NKC Research.
The local unit was little swayed by the domestic CPI release, whipsawing throughout the day, with eyes turned towards today’s Jackson Hole retreat to gauge the direction of US monetary policy.
At the close of local trade, the rand quoted 0.48 percent weaker at R16.90/$, after trading in range of R16.76/$ - R16.92/$. The rand managed to recoup some of yesterday’s losses overnight. July PPI inflation data is due for release today, but most of the direction is likely to come from the US dollar. Expected range today R16.75/$ - R17.00/$.
South African bourse
The JSE All Share (+0.82 percent) ended higher yesterday, led by gains in large gold (+3.98 percent) and technology (+2.34 percent) stocks. In local news, Nedbank reported a drop in half-year profits of close to 70 percent yesterday, saying it hopes the worst impact of Covid-19 is over. However, traders were less convinced as the bank’s stock price tumbled by 5.68 percent. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.41 percent) traded firmer.
Brent crude oil
The Brent oil price ran out of momentum on Wednesday, amid demand corners, but losses were mitigated by the closing of US producers operating in the Gulf of Mexico. At the close of local trade, benchmark Brent crude futures quoted 0.41 percent lower at $45.80pb. Crude prices traded steady during Asian trade this morning.