JOHANNESBURG - Tuesday’s better-than-expected Q2 GDP release helped the rand carry positive momentum into yesterday’s European session to rally below the psychological R15/$ threshold amid easing global trade tensions according to NKC Research.
Risk appetite improved on the back of positive news from Britain, Italy and Hong Kong. Meanwhile, broad-based dollar weakness counted in the rand’s favour, as investors sold greenback in favour of higher-yielding currencies, while also propping up the offshore yuan to further lift risk sentiment. At the close of local trade, the rand quoted 1.8 percent stronger at R14.81/$, after trading in range of R14.81/$ - R15.14/$. The rand traded firmer overnight. Expected range today R14.55/$ - R14.90/$.
South African bourse
The JSE All Share (+0.3 percent) tracked Asian and European stock markets higher yesterday. Naspers (+2.7 percent) traded firmer as investor sentiment improved after Hong Kong’s controversial extradition bill was withdrawn, boosting Tencent ‘s share price – which Naspers holds a 31.1 percent stake in. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.8 percent traded higher.
Brent crude oil
The Brent oil price was flat throughout most of yesterday’s session, but received a boost from private survey data showing that activity in China's services sector rose at the fastest pace in three months in August. At the close of local trade, benchmark Brent crude futures quoted 3.2 percent higher at $60.36. Crude prices traded steady during Asian trade this morning.
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