JOHANNESBURG - The South African currency bounced back from a steep sell-off yesterday following the strikes on US-led forces in Iraq according to NKC Research.
However, the tone of the statement by Iran thereafter was somewhat muted, noting that it does not want an escalation, while the US presidency has also been uncharacteristically calm. This has led to the prospect of no further escalation. The only major development on the local front would have been the PMI release, which, while still weak, would not have disappointed as expectations would not have been too positive. At the close of local trade the rand quoted 0.95 percent stronger at R14.23/$, after trading in range of R14.21/$ - R14.45/$. The rand appeared steady during this morning’s Asian trading session. Expected range today R14.00/$ - R14.30/$.
South African bourse
The JSE All Share (-0.11 percent) ended weaker yesterday, as Iran tensions weighed in the back of investors’ minds. In local news, Barloworld stock turned out to be one of the day’s biggest laggards after the share price fell by 5.48 percent to close at R101.14. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.40 percent) traded lower.
Brent crude oil
The Brent oil price dipped below the $68 level as fears subsided yesterday. US President Donald Trump said, “All is well!” in response to Iran’s missile attack on US troops. At close of local trade, benchmark Brent crude futures quoted 1.67 percent lower at $67.91pb. Crude prices surrendered gains during New York trading hours but steadied this morning.