The rand weakened significantly against the major currencies in early trade as demand for emerging currencies took a dent.
By 9h30am the local unit had weakened 1.4% against the Dollar and 1.5% against the Euro but was 1.8% weaker against the British pound, trading at:
R13.11 against the US Dollar
R14.94 against the Euro
R16.99 against the British pound
The local bourse was weaker in early trade with the all-share index up 0.2% to 51,253 , while the top 40 index was down 0.1% to 45,132. Some of the big movers saw Sephaku Cement share price gain 5% in early trade, while Onelogix stock had tanked by 7.8% in early trade.
The international markets were trading weaker as fears that the European Central Bank was considering the end of its easy monetary policy and the sell-off in technology stock resuming.
The FTSE opened was down 0.4%
Major U.S. benchmarks were also stronger overnight.
The NASDAQ was down 1.4%
The Dow Jones was down 0.7%.
Asian stocks followed US stocks despite strong manufacturing data coming out of China.
Both the Nikkei and the Hang Seng were down 0.9% in early trade.
Market factors to watch out for today:
- Statistics SA is Trade Balance data for May later on today
- Private sector credit for May is also expected to be released today
- ANC Policy Conference starts today and we expected issues like the revised mining charter, radical economic transformation to be clearly defined and formulated.