WATCH: Rand finds firmer footing against the dollar
JOHANNESBURG - The rand started the early European session on the back foot as negative momentum from weak US factory data and domestic PMI data lingered according to NKC Research.
The local unit found a firmer footing as the session progressed to lead gains in EM currencies in the afternoon, capturing a mood of cautious optimism after the ruling ANC party’s leaders stressed the restructuring of Eskom as a priority. However, a sombre mood still persisted as investor confidence remains downbeat on rising government debt with Moody’s decision in November looming. At the close of local trade, the rand quoted 0.6 percent stronger at R15.26/$, after trading in range of R15.21/$ - R15.40/$. The rand traded little changed overnight. Expected range today R15.05/$ - R15.30/$.
South African bourse
The JSE All Share (-1.7 percent) ended deep in the red yesterday, with losses across the board. Technology, consumer non-cyclical and energy shares were the hardest hit. In local news, Old Mutual (-0.3 percent) said fired Chief Executive Peter Moyo issued the South African insurer with a summons seeking damages totalling R250m. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.9 percent) traded lower.
Brent crude oil
The Brent oil price traded lower yesterday due to concerns over a slowdown in US demand and a surprise increase in US crude inventories last week. At the close of local trade, benchmark Brent crude futures quoted 2.8 percent lower at $57.7pb. Crude prices traded flat during Asian trade this morning.
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