File image: IOL
File image: IOL

WATCH: Rand trips as load shedding intensifies

By Compiled by Dhivana Rajgopaul Time of article published Dec 10, 2019

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JOHANNESBURG - The South African currency whipsawed during yesterday’s European session as markets reacted to the implementation of yet more load shedding according to NKC Research. 

While the rand is supported by carry-trade appeal, traders remained cautious as the December 15 US-Sino trade deadline approaches. That said, the day’s big move occurred in after-hours trading when Eskom unexpectedly announced unprecedented stage 6 load-shedding, which caused the rand to plummet. At the close of local trade, the rand quoted 0.19 percent stronger at R14.58/$, after trading in range of R14.57/$ - R14.66/$. Looking ahead, Eskom’s woes will place pressure on the rand, with a slew of data – inflation, retail sales, mining and manufacturing production – set for release over the course of the week, which is likely to confirm that the economy is stuck in a rut. Expected range today R14.60/$ - R14.80/$.

South African bourse

The JSE All Share (-0.07 percent) tracked global stock markets lower yesterday after investors were spooked by softer Chinese trade data for November. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.20 percent) traded higher.

Brent crude oil

The Brent oil price traded weaker yesterday amid growing concern over the impact of the trade quarrel between the US and China, after the latter’s exports declined for the fourth month in a row. At the close of local trade, benchmark Brent crude futures quoted 0.02 percent lower at $64.17pb. Crude prices softened further during Asian trade this morning. 

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