Compiled by Dhivana Rajgopaul
JOHANNESBURG - The rand was at the mercy of shifts in global risk sentiment as the Trump administration brought an abrupt end to stimulus talks with the Democrats according to NKC Research.
However, a tweet from the US President, in support of more stimulus measures, sparked a reversal in risk-on sentiment. Nonetheless, Trump’s decision to call off stimulus talks until after the elections could represent a watershed moment for the US economy as fiscal stimulus is expiring and employment growth is slowing. Without faster job growth – unlikely at this stage of the recovery – or increased fiscal aid, households, businesses and state and local governments will be increasingly susceptible to a deterioration of the health situation.
At the close of local trade, the rand quoted 0.14 percent weaker at R16.65/$, after trading in range of R16.54/$ - R16.74/$. The rand traded flat overnight. Expected range today R16.55/$ - R16.70/$.
South African bourse
The JSE All Share (+1.01 percent) ended higher yesterday, led by gains in large tech (+1.39 percent) and resources (+1.46 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.49 percent) traded on the front foot.
Brent crude oil
The Brent oil price traded on a softer footing yesterday as American Petroleum Institute data showed US oil stockpiles rose by 951,000 barrels last week. At the close of local trade, benchmark Brent crude futures quoted 1.66 percent weaker at $41.41pb. Crude prices traded steady during Asian trade.