Rand shuffles sideways in choppy trade
JOHANNESBURG - The South African rand traded little changed as risk appetite was curbed by concern surrounding rising infections across the globe according to NKC Research.
On domestic soil, the economic calendar is focused this week on the Sarb convention taking place over July 21 - 23. While our baseline expectation is for the Sarb to opt for a cautious approach with a maintenance of the repo rate at 3.75 percent, the balance of risks is tilted towards an addition rate cut of 25 - 50 bps. At the close of local trade, the rand quoted 0.22 percent stronger at R16.67/$, after trading in range of R16.64/$ - R16.76/$. This morning, the rand softened slightly after strengthening in after hours trading yesterday evening. Expected range today R16.45/$ - R16.75/$.
South African bourse
The JSE All Share (+0.6 percent) ended in the black yesterday as local sectors traded mostly higher. Larger gold (+4.12 percent) and platinum (+2.83 percent) mining stocks gained from higher precious metals prices. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.89 percent) flexed it muscles thanks to progress on a Covid-19 vaccine.
Brent crude oil
The Brent oil price struggled to find a gear as prospects of a recovery in fuel demand were doused by a pickup in the world’s coronavirus infections. At the close of local trade, benchmark Brent crude futures quoted 0.40 percent higher at $43.04pb. Crude prices regained at the start of the New York trading session yesterday and extended gains in Asian trade this morning.
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