JOHANNESBURG - The rand swung between gains and losses as investors weighed a cautious outlook on the budget against a receding trade-weighted dollar and oscillations in global risk appetite according to NKC Research.
Across financial markets a tug of war played out, as faith in the nascent economic recovery battled concerns about rising Covid-19 infections. Concerns that an unfolding second wave of infections will result in the reintroduction of strict lockdown measures tempered risk appetite. On domestic soil, all eyes are on tomorrow’s adjusted fiscal budget. Not only will the Treasury have to contend with a marked reduction in revenue due to the economic collapse, but Finance Minister Tito Mboweni will have to reprioritise R130 billion towards the fiscal stimulus plan, provide clarity on the R160 billion in saving from a reduction in the public sector wage bill and provide guidance on the future of embattled State-Owned Enterprises. At the close of local trade, the rand was unchanged at R17.34/$, after trading in range of R17.25/$ - R17.50/$. The rand, in a knee-jerk manner, fell unexpectedly during Asian trading but recovered swiftly.
South African bourse
The JSE All Share manged to close in the black yesterday, as losses in large financial stocks (-2.70 percent) partly offset a 3.41 percent rise in gold shares. In the overall EM sphere, the MSCI Emerging Market Index (-0.12 percent) traded lower.
Brent crude oil
The Brent oil price traded on the front yesterday, on the back of Opec supply cuts, but fears over a resurgence in coronavirus cases kept a lid on gains. At the close of local trade, benchmark Brent crude futures quoted 0.76 percent higher at $42.36pb. Crude prices wobbled in Asian trade this morning.
Like the Business Report on Facebook by clicking here or follow us on Twitter @Busrep.
You can also follow the Business Report on Instagram here
BUSINESS REPORT ONLINE