JOHANNESBURG - The South African rand managed to garner support from easing US-Sino trade tensions late in yesterday’s session according to NKC Research.
Washington announced that certain China goods are being removed from the tariff list, while the implementation date of a 10 percent tariff on certain China-manufactured consumer goods has been delayed from September 1 to December 15. That said, EM risk sentiment was weighed down by intensifying protests in Hong Kong and the Argentina rout. An ongoing sell-off in Argentine assets amid surging default risk and escalating protests in Hong Kong steered investors to safer harbours, leaving the rand, lira and ruble on the back foot for a third straight session. At the close of local trade, the rand quoted 0.8 percent stronger at R15.15/$, after trading in range of R15.09/$ - R15.40/$. The rand was steady overnight. Expected range today R15.00/$ - R15.30/$.
South African bourse
The JSE All Share (-0.3 percent) ended lower yesterday dragged by losses across the board, but gold mining (-9 percent) stocks were the main laggards. A sharp fall in the gold price and dissatisfaction over wage talks weighed on Sibanye-Stillwater’s (-10.8 percent) share price. In the overall EM sphere, the MSCI Emerging Market Index (-0.58 percent) traded lower.
Brent crude oil
The Brent oil price shot up yesterday as Sino-US trade tensions eased somewhat after the US said it would delay imposing tariffs on some Chinese exports. At the close of local trade, benchmark Brent crude futures quoted 3.8 percent higher at $60.56pb. Crude prices traded weaker during Asian trade.