WATCH: Rand runs out of momentum during morning trading session
JOHANNESBURG - The rand benefited somewhat from speculation that the Fed may announce yield-curve control measures, with the receding greenback sheltering the rand from reaction to an abysmal business confidence reading according to NKC Research.
On domestic soil, Moody’s cut ailing agricultural-focused lender Land Bank deeper into junk territory as South Africa’s weak prospects – we have now revised our projected contraction to 9.1 percent for 2020 – contributed to the State company’s default on another interest payment due to “liquidity challenges”. However, the market tone was dominated by expectations surrounding the Fed announcement, and we believe that the disinflationary impulse, along with the great disruption in economic activity, is a key reason the Fed will maintain an extremely dovish stance. At the close of local trade, the rand quoted 0.12 percent softer at R16.61/$, after trading in range of R16.52/$ - R16.66/$. The rand ran out of momentum during the Asian trading session this morning.
South African bourse
The JSE All Share (-1.49 percent) flashed red across the board yesterday, with large platinum stocks falling by 8.32 percent. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.29 percent) traded lower.
Brent crude oil
It was an inside day for Brent oil as the price was mostly flat yesterday. Supply concerns were amplified after the American Petroleum Institute said US crude stockpiles were up by 8.4 million barrels during the week ended June 5. At the close of local trade, benchmark Brent crude futures quoted 0.69 percent lower at $40.37pb. Crude prices traded weaker during Asian trade this morning.
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