JOHANNESBURG - The rand traded on a firmer footing as the greenback tumbled in the wake of weaker-than-expected non-manufacturing ISM data, spurring a jump in rate cut odds for the US Fed to above 90 percent for its decision later this month according to NKC Research.
We anticipate a rate cut of 25 bps. This offered the rand some shelter from a damning report from the Institute of International Finance, whose worst-case scenario indicates that South Africa’s debt may deteriorate to as much as 95 percent of GDP by 2024. At the close of local trade, the rand quoted 0.6% stronger at R15.15/$, after trading in range of R15.15/$ - R15.22/$. The rand edged stronger overnight. Expected range today R15.05/$ - R15.20$.
South African bourse
The JSE All Share (-0.5 percent) ended lower for the second consecutive trading day yesterday, in line with reduced global risk appetite. However, precious metals miners such as Anglo American Platinum and Anglo Gold Ashanti posted strong gains on the back of rising precious metal prices. In local news, construction group Raubex (+7.8 percent) said its headline profit will jump by 60 percent - 80 percent in the six months to end-August. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.3 percent) traded higher.
Brent crude oil