The rand reacted violently to the speech, immediately shedding 20 cents and weakening from R14.60/$ to R14.80/$, while bond markets also saw a sell-off. Photo: Pixabay

JOHANNESBURG - The South African currency firmed initially on cautious optimism stemming from United States-Sino trade progress as market watchers looked towards United States President Donald Trump’s trade policy address according to NKC Research.  

However, a reversal in the afternoon saw these early gains wiped out as the rand stumbled well into after hours trading. At the close of local trade, the rand quoted 0.16 percent weaker at R14.89/$, after trading in range of R14.80/$ - R14.88/$. The rand steadied overnight. The expected range of how the rand will trade today is  R14.85/$ - R15.10/$.

South African bourse

The JSE All Share (+0.40 percent) clawed back prior losses yesterday. Gains were fairly broad based, but telecommunications company Telkom (+6.68 percent) made the loudest noise after the telecoms firm said it was engaged in deal talks over a potential acquisition, despite soaring debt costs weighing heavily on half-year profits. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.28 percent) traded higher.

Brent crude oil

The Brent oil price traded firmer yesterday, underpinned by expectations that President Donald Trump would signal progress on trade negotiations with Beijing. At the close of local trade, benchmark Brent crude futures quoted 0.35 percent higher at $62.62pb. Brent crude prices traded weaker during Asian trade this morning as trade hopes dwindled following President Trump’s speech. 

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