JOHANNESBURG - The South African currency traded on the front foot yesterday on hopes that Sino-US trade tensions could soon be defused according to NKC Research.
The local unit recovered from its weakest level in nearly a week after China, on August 23, announced retaliatory trade tariffs on US imports which lead to an escalation in the trade war. At the close of local trade, the rand quoted 0.77 percent stronger at R15.23/$, after trading in range of R15.19/$ - R15.44/$. The rand dipped weaker overnight. Expected range today R15.15/$ - R15.45/$.
South African bourse
The JSE All Share (-0.34 percent) ended lower yesterday, as it took cues from downbeat equity markets in Asia. In local news, Sasol (-1.92 percent) cautioned that its earnings before interest, taxation, depreciation and amortisation (Ebitda) were expected to be between $150m and $300m due to technical issues at its embattled Lake Charles plant in the US. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.32 percent) traded lower.
Brent crude oil
Hopes of a trade truce between the US and China led oil prices higher during yesterday’s session. Meanwhile, the possibility of a deal between Washington and Tehran to end a nuclear standoff increased the outlook of Iranian crude supply and weighed on prices. At the close of local trade, benchmark Brent crude futures quoted 0.51 percent lower at $59.05pb. Crude prices aimed higher during Asian trade this morning.
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