JOHANNESBURG - The South African currency traded on the back foot during the early European session on souring global risk sentiment before recovering later during the session according to NKC Research.
Ongoing tensions between Washington and Beijing curbed risk appetite, weighing on the risk-sensitive rand. On the US front, the dollar index digested a revision in Q2 real GDP growth to 2.0 percent from a previous estimate of 2.1 percent. Downward revisions to government spending and residential investment were partially offset by an upward revision to consumer spending. At the close of local trade, the rand quoted 0.63 percent stronger at R15.32/$, after trading in range of R15.26/$ - R15.48/$. The rand drifted weaker overnight. Expected range today R15.20/$ - R15.40/$.
South African bourse
The JSE All Share (+0.29 percent) ended higher yesterday, after China signalled that it won’t retaliate in an ongoing trade war with the US, boosting risk appetite across the board. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.49 percent) traded higher.
Brent crude oil
The Brent oil price traded higher yesterday as government data showed that US crude inventories fell by 10 million barrels last week, the lowest since October, while distillate and gasoline stocks each fell by more than 2 million barrels. At the close of local trade, benchmark Brent crude futures quoted 0.78 percent higher at $60.48pb. Crude prices traded weaker during Asian trade this morning.
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