WATCH: Rand receives reprieve as Q2 GDP figures exceeds estimates
JOHANNESBURG - The South African currency received reprieve as Q2 GDP figures exceeded estimates while a late slump in the trade-weighted greenback added to rand momentum according to NKC Research.
Data respite aside, the local unit remains on a very fragile footing as ongoing US-Sino trade tensions continue to weigh on risk sentiment, as Beijing and Washington still have not agreed upon a meeting date for a new round of talks. At the close of local trade, the rand quoted 0.76 percent stronger at R15.12/$, after trading in range of R15.08/$ - R15.29/$. The rand extended gains overnight. Expected range today R15.00/$ - R15.20/$.
South African bourse
The JSE All Share (-0.08 percent) ended in the red as the South African bourse struggled to gain traction after the economy grew more than expected. In local news, Aspen (+7.26 percent) shares vaulted higher after the pharmaceuticals company announced yesterday that its debt for the year ended 30 June 2019 has dipped below R40bn, down from R53.5 billion realised during the same period a year ago. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.07 percent) traded lower.
Brent crude oil
The Brent oil price traded lower again yesterday, weighed down by trade war uncertainty and after the latest data showed Russian oil production rose to 11.294 million bpd in August. At the close of local trade, benchmark Brent crude futures quoted 1.75 percent lower at $57.66pb. Crude prices were flat during Asian trade this morning.