JOHANNESBURG - The rand shrugged off risk-off sentiment in global markets as the local unit opened on a firmer footing yesterday morning according to NKC Research.
The South African currency whipsawed throughout the session and ran out of momentum in late trade. Rooted in uncertainty regarding US-Sino trade talks, risk assets headed lower again yesterday (we do not foresee an imminent long-lasting comprehensive trade agreement), although the rand bucked the trend in optimism for an uneventful conclusion of the May 8 national poll, with nearly two-thirds of voting districts pointing to a comfortable ANC victory. At the close of local trade, the rand quoted 0.3 percent weaker at R14.42/$, after trading in range of R14.31/$ - R14.47/$. The rand traded firmer overnight. Expected range today R14.25/$ - R14.40/$.
South African bourse
The JSE All Share (-2.7 percent) traded sharply lower yesterday, in step with global stock markets, after President Trump said China “broke the deal” in trade talks. In the overall emerging market sphere, the MSCI Emerging Market Index (-2.1 percent) traded lower. In local news, Steinhoff’s (-20.4 percent) share price tumbled yesterday after the embattled firm reported a $4bn operating loss for 2017 fiscal year.
Brent crude oil
The Brent oil price surrender early gains yesterday, retreating below the $70 level, as Sino-US trade fears took centre stage. At the close of local trade, benchmark Brent crude futures quoted 0.4 percent lower at $69.64pb. Crude prices traded firmer during Asian trade this morning.
You can also follow the Business Report on Instagram here
BUSINESS REPORT ONLINE