JOHANNESBURG - The rand retreated somewhat during the European session as fears of slowing global growth suppressed risk appetite according to NKC Research.
In turn, the Sarb played into expectations with a unanimous decision to hold the repo rate at 6.75 percent, citing “balanced” risks with expectations of headline inflation quickening from 4.8 percent in Q1 2019 to 5.4 percent by Q4. Traders however cautiously awaited guidance from Moody’s all-important sovereign credit rating decision due later today. At the close of local trade, the rand quoted 0.3 percent weaker at R14.67/$, after trading in range of R14.57/$ - R14.75/$. The rand traded flat overnight. Expected range today R14.50/$ - R14.70/$.
South African bourse
The JSE All Share (-0.2 percent) closed in the red yesterday, dragged lower by losses in gold and platinum miners following a slump in precious metal prices. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.1 percent) traded higher. In local news, Capitec (+3.9 percent) said its headline earnings per share were up 19 percent to 4,577 cents for the year ended February 2019.
Brent crude oil
The Brent oil price headed lower in early European trade due to pressure from US President Donald Trump for Opec to raise its oil production and news that Russia could end its supply cuts, but erased some losses later. At the close of local trade, benchmark Brent crude futures quoted 0.5 percent lower at $67.2pb. Crude prices traded higher during Asian trade this morning, shrugging off Trump’s demands.
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