JOHANNESBURG - The South African rand gained reprieve from thawing risk appetite as perceived US-Sino tensions dimmed, providing shelter for the local unit ahead of a pivotal supplementary budget address according to NKC Research.
Risk appetite improved after US President Donald Trump made a positive comment on Sino-US trade. Meanwhile, the local currency shrugged off a deterioration in the unemployment position over Q1, with the focus now attuned to today’s critical budget address. At the close of local trade, the rand quoted 0.85 percent firmer at R17.22/$, after trading in range of R17.19/$ - R17.47/$. The rand traded steady overnight as markets prepare for the worst when finance minister Tito Mboweni delivers his budget speech later today. Expected range today R17.05/$ - R17.45/$.
South African bourse
The JSE All Share (+2.30 percent) tracked global stock markets higher yesterday, while rising precious metal prices drove large gold (+6.12 percent) and platinum (+6.98 percent) mining stocks higher. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.44 percent) traded higher.
Brent crude oil
The Brent oil price rose after US President Donal Trump said a trade deal with China remains “fully intact.” At the close of local trade, benchmark Brent crude futures quoted 1.71 percent higher at $43.43pb. Brent crude oil prices traded on a softer footing during Asian trade this morning.
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