JOHANNESBURG - The South African currency traded on a firmer footing during the European session as risk aversion eased slightly after inversion of the US debt curve precipitated a steep sell-off on Wednesday according to NKC Research.
While the rand pulled back from a near 11-month low, the outlook remains less than rosy as the IMF cautioned yesterday that public debt is approaching uncomfortable levels. At the close of local trade, the rand quoted 0.56 percent stronger at R15.27/$, after trading in range of R15.21/$ - R15.43/$. The local unit extended gains during the Asian trading session this morning. Expected range today R15.05/$ - R15.40/$.
South African bourse
The JSE All Share (-0.49 percent) ended lower yesterday, in step with struggling global stock markets. In local news, Discovery (+5.26 percent) ended the day on the front foot after the company’s share price suffered a drubbing following the release of the National Health Insurance Bill which appeared last Thursday – which raised uncertainty over the business model for medical aids. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.09 percent) traded lower.
Brent crude oil
The Brent oil price extended losses yesterday, dragged by mounting recession fears and an expected rise in US crude stocks. At the close of local trade, benchmark Brent crude futures quoted 1.64 percent lower at $58.13pb. Crude prices traded stronger during Asian trade this morning.