03 Jul 2019
Rand closes at R14.08/$
The local unit had a fairly flat session on Tuesday closing at R14.08/$, having opened at R14.09/$.
It traded within a tight range of R14.06/$ and R14.15/$.
03 Jul 2019
Oil weighed down as global economic gloom rains on OPEC's parade
Heesu Lee, Bloomberg
Oil struggled to recover after suffering its worst reaction to an OPEC meeting in more than four years.
Futures were marginally higher in New York after an industry report showed American oil inventories declined by almost 5 million barrels last week.
Prices were still far from recovering their 4.8% loss on Tuesday when concerns about the global economy overshadowed a decision by the Organization of Petroleum Exporting Countries and its allies to extend output cuts for nine months. It was the biggest drop following an OPEC gathering since November 2014.
Oil has swung between gains and losses this week as initial optimism that the OPEC+ coalition would extend their production deal was eclipsed by concerns about global growth. The group agreed on Tuesday to prolong cuts into 2020, but divisions remained over which measure of inventories should be used to determine the scale of the supply glut.
Meanwhile, anxieties over global growth have resurfaced following weak manufacturing reports from the US, China and Europe.
“Growth concerns continue to weigh on the crude market,’’ said Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore. “Markets are beginning to query to what extent can OPEC+ continue to cut production in sustaining prices. There is limited scope for further supply curbs.’’
West Texas Intermediate oil for August delivery gained 14 cents to $56.39 a barrel on the New York Mercantile Exchange as of 13:55 in Singapore. Futures slid $2.84 on Tuesday, with losses accelerating as the contract crashed through several key technical levels.
03 Jul 2019
EOH says forensic probe into public sector contracts complete
IT group EOH said on Wednesday that an investigation into its public sector contracts has been submitted to its board.
"ENSafrica has concluded the investigation commissioned by EOH into public sector contracts and has submitted a forensic report and its recommendations to the board of directors of EOH.
"The Board has assessed the findings of the ENSafrica report and is engaging with the stakeholders concerned where appropriate. Relevant findings and associated actions will be made public on or about 16 July 2019, or as required."
03 Jul 2019
Asian stocks decline; US yields hit lowest since ‘16
Adam Haigh, Bloomberg, and Fin24
Stocks in Asia were mostly lower Wednesday and US equity futures drifted as investors took a breather after four weeks of gains.
The rand was trading at R14.10 against the dollar.
Ten-year US Treasury yields dipped to the lowest since November 2016 following a disappointing run of economic data.
Shares indexes in Japan, China and South Korea led losses, while equities in Australia edged higher. European futures were little changed.
The yen hit its high for the session after the Bank of Japan made small tweaks to its bond buying program.
The rally extended in Treasuries and gold. News on European Central Bank and Federal Reserve leadership appointments underlined the prospect for easier monetary policy, which could offer support for a range of assets.
03 Jul 2019
Gold's rally gets booster shot as Trump picks doves for the Fed
Gold resumed its rally above $1 400 an ounce on a cocktail of positive drivers, with weak data feeding expectations for fresh easing from central banks, Treasury yields hitting a two-year low, and the US president seeking to reshape the Federal Reserve board with two picks seen as doves.
Bullion extended the biggest one-day gain in three years as concern over slowing growth ticked up, and investors will focus next on data for US private hiring, factory orders and the services sector, which come on Wednesday. The jobs report for June on Friday will also be key in providing signals on the possible timing and scale of looser monetary policy by the Fed.