WATCH: Rand hovers near recent highs
JOHANNESBURG - The rand hovered near recent highs as the local unit garnered support this week from a robust Q2 GDP reading and risk-on global sentiment according to NKC Research.
Coming off the back foot the local unit regained traction last week, although the tide may turn as market watchers eye business confidence, manufacturing and mining production releases this week. US-Sino trade optimism buoyed interest in risk assets, including emerging market currencies, but we remain broadly defensive on emerging market assets as we believe that there is a thinner buffer against the negative effects from rising trade tensions, and slowing global growth. At the close of local trade, the rand quoted 0.89 percent stronger at R14.74/$, after trading in range of R14.72/$ - R14.90 Expected range today R14.70/$ - R14.95/$.
South African bourse
The JSE All Share (+0.21 percent) closed higher on Friday, as it banked a weekly gain, amid a general improvement in EM sentiment. In local news, Old Mutual (+0.49 percent) Chief Executive Peter Moyo intends to return to his desk next week, his lawyer said on Friday after a South African court dismissed the insurer’s attempt to block his temporary reinstatement. Moyo was sacked in June regarding a dispute over a conflict of interest, but a court ordered that he be temporarily reinstated in July. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.49 percent) traded higher.
Brent crude oil
The Brent oil price fell suddenly on Friday, but manged to remain above the psychological $60pb-level as crude looked set for a weekly gain. At the close of local trade, benchmark Brent crude futures quoted 0.99 percent lower at $60.31pb. Crude prices traded stronger during Asian trade this morning.