WATCH: Rand trades weaker overnight
JOHANNESBURG - The rand took advantage of improving global risk sentiment although a heavy domestic calendar this month sets the scene for a volatile period ahead.
In the upcoming State of the Nation Address (Sona), prevailing economic conditions and recent political developments suggest the speech will not signal a seminal change in policy direction as one might have hoped for, but will rather be a mix-match of familiar themes, although perhaps dressed up in new clothes. The litmus test will however come with the budget address at the end of the month, which we anticipate will disappoint so as to force Moody’s hand into a cut to junk territory. At the close of local trade, the rand quoted 0.74 percent stronger at R14.71/$, after trading in range of R14.72/$ - R14.92/$. The rand traded weaker overnight. Expected range today R14.70/$ - R14.95/$.
South African bourse
The JSE All Share (+1.77 percent rebounded strongly yesterday, in step with global stock markets, led by gains in technology (+3.62 percent) and industrial (+2.04 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+2.36 percent) traded stronger.
Brent crude oil
The Brent oil price traded steadily higher amid expectations that Opec would ramp up production cuts to offset the unexpected drop in demand following an outbreak of the coronavirus. At the close of local trade, benchmark Brent crude futures quoted 0.2 percent lower at $54.77pb. Crude prices traded little changed during Asian trade this morning.
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