WATCH: Greenback weakness offers reprieve to rand
JOHANNESBURG - The South African currency traded little changed as a US-Sino trade deal impasse curbed risk appetite. Broad-based greenback weakness however provided some reprieve to the local unit according to NKC Research.
The local economic calendar is now focused on the outcome of the Sarb decision due tomorrow, with our expectation for the repo rate to be kept at 6.5 percent under the assumption that the central bank will exhibit a hawkish bias in recognition of further negative credit rating actions in the next six months. At the close of local trade, the rand quoted 0.10 percent stronger at R14.78/$, after trading in range of R14.72/$ - R14.82/$. The rand traded weaker overnight. Expected range today R14.70/$ - R14.90/$.
South African bourse
The JSE All Share (+1.60 percent) ended firmer yesterday, mainly led by gains in the technology (+3.64 percent) sector. Meanwhile, major US and European stock indices were a mixed bag due to assorted earnings results and trade uncertainty. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.48 percent) traded higher.
Brent crude oil
The Brent oil price trade lower yesterday after monthly Energy Information Administration figures showed US crude production is expected to rise to a record 9.13 million bpd in December. At the close of local trade, benchmark Brent crude futures quoted 1.24 percent lower at $61.51pb. Crude prices extended losses during Asian trade this morning.