JOHANNESBURG - The rand traded on a more bullish tone during the early European session (and carried that momentum into the afternoon session), in tandem with global risk assets as partial overturn of the previous day’s risk-off sentiment according to NKC Research.
Thursday hosted a risk-off rally in Treasuries as stocks and oil prices tumbled in response rising trade tensions, the ongoing Brexit saga and political turmoil in the UK, as well as weak US PMI data. At the close of local trade, the rand quoted 0.4 percent stronger at R14.41/$, after trading in range of R14.39/$ - R14.50/$. The rand remained in a narrow range over the weekend, after Cyril Ramaphosa was sworn in as president. Expected range today R14.15/$ - R14.45/$.
South African bourse
The JSE All Share (+0.3 percent) ended Friday on the front foot, in line with global stock indices, as trade war jitters faded somewhat. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.2 percent) traded higher. In local news, Old Mutual (-3.0 percent) was one of the day’s biggest laggards after the company said its Chief Executive, Peter Moyo had been suspended with immediate effect due to a “material breakdown in trust.”
Brent crude oil
The Brent oil price stabilised on Friday as it headed for its biggest weekly drop in 2019, due to global growth concerns and rising inventories. At the close of local trade, benchmark Brent crude futures quoted 0.7 percent lower at $68.17pb. Crude prices recovered over the weekend.
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