JOHANNESBURG - The rand weakened to a one-month low during yesterday’s European trading session amid a deterioration in risk sentiment according to NKC Research.
The South African currency was caught in the global market panic over falling equity prices as well as the continued uncertainties surrounding Brexit, the US-China trade war and the EU-Italy budget standoff, which saw investors dump riskier assets such as the rand. At the close of local trade, the rand quoted 1.4 percent weaker at R14.33/$, after trading in the range of R14.09/$ - R14.37/$. The rand traded flat overnight. Expected range today R14.15/$ - R14.45/$.
South African bourse
The JSE All Share (-1.2 percent) ended lower yesterday dragged by losses in large retail (-3.1 percent) and industrial (-2.9 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.89 percent) traded sharply lower. In local news, MTN (-2.9 percent) shares came under pressure after the telecommunications giant said that it was still in talks with Nigerian authorities over a $8.1bn dispute and a $2bn tax penalty.
Brent crude oil
The Brent oil price came under pressure yesterday as struggling global stock markets dragged crude prices lower, causing Brent to surrender some of Friday’s gains. At the close of local trade, the Brent oil price quoted 2.3 percent lower at $60.62/pb. Crude prices traded little changed during Asian trade this morning.