JOHANNESBURG - The rand slumped in the wake of Moody’s decision to slash the growth outlook, overturning a fledgling recovery in the local unit earlier the session on the back of China stimulus according to NKC Research.
Another round of Chinese stimulus boosted global risk appetite, as monetary authorities opted to cut the interest rate on medium-term loans in a bid to counter spillover effects from the coronavirus. Later during the European session, Moody’s announcement that South Africa’s growth forecast for 2020 has been lowered rung alarm bells. At the close of local trade, the rand quoted 0.96 percent weaker at R15.00/$, after trading in range of R14.85/$ - R15.02/$. The rand remained under pressure overnight. Expected range today R14.90/$ - R15.10/$.
South African bourse
The JSE All Share (+0.56 percent) ended in the black yesterday, led by gains in large platinum mining (+3.42 percent) shares. In local news, Anglo American Platinum (+5.43 percent) reported a surge in annual earnings for 2019 thanks to higher metal prices. The miner also announced that its Chief Executive, Chris Griffith, will step down in April, but did not name a successor. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.15 percent) traded higher.
Brent crude oil
The Brent oil price traded in a narrow band yesterday, as fears about the adverse implications of the coronavirus on the global economy kept crude from advancing. At the close of local trade, benchmark Brent crude futures quoted 0.19 percent lower at $57.23pb. Crude prices whipsawed lower during Asian trade this morning.