File image: IOL
File image: IOL

WATCH: Rand surrenders gains but recovers overnight

By Compiled by Dhivana Rajgopaul Time of article published Feb 6, 2020

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JOHANNESBURG - The rand rode the tailwinds of market optimism that containment measures will curtail risks associated with the coronavirus outbreak, sheltering the rand from domestic woes according to NKC Research. 

Risk sentiment improved following reports of a “significant breakthrough” in attempts to develop a coronavirus vaccine. It will not come in time to alleviate the current outbreak, but it potentially could keep the outbreak from repeating. On the local front, President Ramaphosa was open to an Eskom debt proposal brought forward by trade union federation Cosatu. At the close of local trade, the rand quoted 0.45 percent stronger at R14.76/$, after trading in range of R14.67/$ - R14.84/$. The rand surrender gains at the start of New York trading yesterday but recovered overnight. Expected range today R14.65/$ - R14.90/$.

South African bourse

The JSE All Share (+1.07 percent) joined global stock markets and leapt higher for the second-consecutive day, as coronavirus fears seem to be taking a back seat for now. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.37 percent) traded higher.

Brent crude oil

The Brent oil price knee jerked higher following reports of a purported treatment for the Chinese virus, which turned out to be false. At the close of local trade, benchmark Brent crude futures quoted 2.86 percent higher at $56.02pb. Crude prices traded firmer during Asian trade this morning. 

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