WATCH: Rand surrenders all of the previous session’s gains
JOHANNESBURG - The rand surrendered all of the previous session’s gains when it dipped back to near multi-month lows during the European session as flashing recession warning signals in advanced economies and weak China data spurred a renewed risk aversion according to NKC Research.
The local unit was steady during early trade, ahead of the retail sales release, before risk-off sentiment sent safe havens on a renewed rally as the inversion of the US debt curve rang recession warning bells. Over the short term, we expect the trade-weighted dollar to advance, leaving counter-currencies including the rand vulnerable. At the close of local trade, the rand quoted 1.8 percent weaker at R15.41/$, after trading in range of R15.12/$ - R15.42/$. Expected range today R15.30/$ - R15.60/$.
South African bourse
The JSE All Share (-2.1 percent) traded near its lowest level in six months yesterday, dragged by global economic growth concerns, in step with European and US stock markets. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.46 percent) traded lower.
Brent crude oil
The Brent oil price traded lower yesterday, after data showed that the eurozone’s GDP struggled in Q2. Meanwhile, the yield curve on the benchmark 10-year Treasury note broke below the 2-year yield – a sign that the US economy might be heading for a recession. At the close of local trade, benchmark Brent crude futures quoted 2.4 percent lower at $59.31pb. Crude prices traded weaker during Asian trade.
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