Africa-Press – South-Africa. JOHANNESBURG – The rand strengthened as optimism surrounding Tuesday’s GDP release died down and souring business confidence weighed, but the dollar index turned negative after the US CPI release according to NKC Research.
Against the broader external backdrop, the ongoing discount-rate shock will be a temporary setback to risk asset valuations rather than scuttle the equity bull market in place since March last year.
Despite the latest sell-off, the divergence between our growth outlook and bond yields is large enough to keep the pressure on Treasury yields upward in coming months.
At the close of local trade, the rand quoted 1.29 percent stronger at R15.16/$, after trading in range of R15.11/$ – R15.37/$. The rand extend gains overnight. The expected range of the rand against the dollar today is R14.90/$ – R15.20/$.
South African bourse
The JSE All Share (-0.20 percent) ended in the red on Wednesday dragged by losses in large gold mining (-4.15 percent) and resources (-1.02 percent) stocks. Meanwhile, a stronger rand meant that financial (+1.34 percent) shares provided some respite. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.53 percent) traded on the front foot.
Brent crude oil
The Brent oil price traded stronger yesterday on the back of upbeat OECD global economic forecasts and Opec+ crude production cuts. At the close of local trade, benchmark Brent crude futures quoted 2.32 percent higher at $68.37pb. Crude prices traded firmer during Asian trade this morning.
BUSINESS REPORT ONLINE
