File Photo: IOL
File Photo: IOL

WATCH: Rand garners support from external factors

By Compiled by Dhivana Rajgopaul Time of article published Nov 4, 2019

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JOHANNESBURG - The rand remained near recent lows in cautious anticipation of Moody’s credit rating action on Friday according to NKC Research.

The local unit garnered support from external factors as better-than-expected Chinese factory activity data – as manufacturing activity unexpectedly quickened to a two-year high in October – spurred global risk appetite. At the close of local trade, the rand quoted 0.09 percent stronger at R15.06/$, after trading in range of R15.05/$ - R15.16/$. The local unit regained traction during the Asian trading session, on the back of US-China trade optimism. Expected range today R14.70/$ - R15.00/$.

South African bourse

The JSE All Share (+0.40 percent) advanced on Friday, tracking global stock markets higher. Prominent rand hedges, Richemont (+0.88 percent), BHP Billiton (+1.44 percent) and British American Tobacco (+0.65 percent) were up ahead of Moody’s credit rating announcement. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.69 percent) traded higher.

Brent crude oil

The Brent oil price rallied during Friday’s trading session on the back of positive Chinese data, shrugging off statistics that showed US crude output rose by nearly 600,000 barrels per day in August to reach a record of 12.4 million bpd. At the close of local trade, benchmark Brent crude futures quoted 1.84 percent higher at $60.76pb. Crude prices traded steady during Asian trade this morning. 

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