WATCH: Rand fails to gain traction ahead of the Budget speech
JOHANNESBURG - The South African currency failed to gain traction after an abysmal start to a busy week according to NKC Research.
Asian equity markets and US equity index futures firmed in partial overturn of a strong risk-off sentiment to open the week, which swept through global equity markets and sent Treasury yields tumbling. A broad theme of risk-off sentiment as the coronavirus continues to spread around the globe, along with increasing concerns about the extent of the economic impact, should keep the risk-sensitive local unit on the back foot in the near term, with the bearish bias expected to deepen as markets digest today’s national budget. At the close of local trade, the rand quoted 0.49 percent weaker at R15.20/$, after trading in range of R15.06/$ - R15.24/$. The rand traded little changed overnight. Expected range today R15.05/$ - R15.50/$.
South African bourse
The JSE All Share (-0.13 percent) traded in a narrow band yesterday as local equities struggled to recover from Tuesday’s major sell-off. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.12 percent) traded marginally higher.
Brent crude oil
The Brent oil price traded weaker yesterday as the spreading coronavirus – and its impact on global fuel demand – counterbalanced Opec supply cuts. At the close of local trade, benchmark Brent crude futures quoted 0.90 perent lower at $56.10pb. Crude prices traded firmer during Asian trade this morning.