JOHANNESBURG - The rand strengthened yesterday after having swung between gains and losses ahead of United States monetary authorities’ two-day convention, with a decision due today according to NKC Research.
On domestic soil, airliner SA Express – which failed to pay salaries since February and suspended operations in March – narrowly escaped liquidation as the court granted a three-month delay in liquidation proceedings to allow more time to “clarify its plans.” That said, investor focus will remain fixated on US monetary policy as the FOMC is due to announce its rates decision. While the surprising 2.5 million payrolls gain in May is welcome news for Fed officials, we do not think it will change the outcome of this week’s meeting. At the close of local trade, the rand quoted 0.38 percent stronger at R16.65/$, after trading in range of R16.93/$ - R16.90/$. The rand traded flat overnight.
South African bourse
The JSE All Share (-0.37 percent) was unable to recoup early losses yesterday, as equity markets across the spectrum turned negative. In the overall emerging market sphere, the MSCI Emerging Market Index (0.21 percent) traded higher.
Brent crude oil
The Brent oil price remained on the back foot yesterday, bouncing off $40pb, amid supply concerns after a few Gulf nations said they would end voluntary production cuts. At the close of local trade, benchmark Brent crude futures quoted 1.39 percent lower at $40.55pb. Crude prices traded on the back foot during Asian trade this morning.