WATCH: SA will be unable to escape a downgrade blow this year - NKC Research
JOHANNESBURG - The South African currency was pummelled in the European session as March Madness started with confirmation that the domestic economy slipped into recession, cementing expectations that South Africa will be unable to escape a downgrade blow this year according to NKC Research.
That said, the Fed announced an emergency rate cut of 50 bps to counter the impact of Covid19, which propelled the rand forward. At the close of local trade, the rand quoted 0.76 percent weaker at R15.56/$, after trading in range of R15.39/$ - R15.62/$. The rand stabilised during the Asian trading session Expected range today R15.25/$ - R15.60/$.
South African bourse
The JSE All Share (+2.16 percent) recovered yesterday as investors took profits following the recent sell-off. In local news, Nedbank (-2.28 percent) reported a 7 percent decline in full-year earnings as a faltering local economy pushed up defaults in 2019. The bank’s impairment charges rose sharply by 66.2 percent to reach R6.1 billion as consumers and businesses struggle under weak economic conditions. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.06 percent) traded higher.
Brent crude oil
The Brent oil price struggled to gain traction as global growth fears outweighed US monetary policy stimulus and potential Opec supply cuts. At the close of local trade, benchmark Brent crude futures quoted 0.02 percent higher at $52.67pb. Crude prices edged firmer in choppy overnight trade.
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