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Markets WRAP: Rand closes at R14.69/$

2019-06-11 08:36

The day's range was between R14.65 and R14.82.

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Last Updated at 01:56
11 Jun 17:00

The rand closed at R14.69 to the greenback on Tuesday afternoon.

The day's range was between R14.65 and R14.82.


11 Jun 13:49

OVERVIEW: US equity futures climbed alongside global stocks as investors trained their focus anew on the America-China trade arena. Treasuries and gold fell. Advances in miners and carmakers pulled the Stoxx Europe 600 Index higher, with shares in Germany among the best performers even as investor confidence in its economy fell to the lowest since 2010. Futures on the S&P 500, Dow and Nasdaq gauges all pointed to gains at the open.

In Asia, China equities outperformed after news that local governments may spend more on infrastructure helped offset the threat by President Donald Trump to raise tariffs again if President Xi Jinping doesn’t meet with him at the Group of 20 summit at month’s end. The dollar edged higher against its major peers.

Iron ore futures surged on the China spending plan, and the onshore yuan recovered after closing at its weakest level of the year. In emerging markets, stocks and currencies both gained. Oil edged up near $54 a barrel in New York. Sentiment has turned cautiously optimistic with investors looking to the G20 summit in Japan as the next way-station in the trade dispute between the world’s two largest economies. Keeping the tension elevated, Trump told reporters on Monday that he could impose tariffs of 25%, or "much higher than 25%" on $300 billion in Chinese goods.

"The market will be a little volatile going into the G20 just as you hear whispers around how trade negotiations are likely to unfold," Caleb Silsby, Whittier Trust chief portfolio manager, told Bloomberg TV. It’s likely the market has priced in a "fairly decent resolution" on trade so any disruption would lead to increased volatility again, Silsby said.

Elsewhere, Mexico’s peso stabilised after posting its best day in almost a year following the accord with the US late Friday.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index rose 0.4% as of 07:26 New York time, poised for their sixth straight advance. The Stoxx Europe 600 Index increased 0.9%, the highest in almost four weeks. Germany’s DAX Index rose 1.3%, the highest in more than three weeks on the largest advance in a week. The Shanghai Composite Index jumped 2.6% on the biggest surge in more than a month. The MSCI Emerging Market Index climbed 0.6%, the highest in more than a month. 

Currencies

The Bloomberg Dollar Spot Index rose 0.1%. The Japanese yen dipped 0.3% to 108.73 per dollar, the weakest in more than a week. The onshore yuan climbed 0.3%, the biggest increase in almost eight weeks. The MSCI Emerging Markets Currency Index gained 0.2%. 

Bonds

The yield on two-year Treasuries increased two basis points to 1.93%. The yield on 10-year Treasuries climbed two basis points to 2.17%. Germany’s 10-year yield fell less than one basis point to -0.22%. Switzerland’s 10-year yield jumped five basis points to -0.456% with the first advance in a week. 

Commodities

Iron ore surged 5.9% to $102.91 per metric ton on the biggest jump in more than two years. LME nickel climbed 1.9% to $11 865 per metric ton on the largest increase in more than two weeks. West Texas Intermediate crude rose 0.8% to $53.68 a barrel.- Bloomberg


11 Jun 11:33

Bianca Botes, Treasury Partner at Peregrine Treasury Solutions said on Tuesday morning that the relief rally in the rand has assisted in easing some local jitters.

"But with US President Donald Trump once again threatening a new round of tariffs on China, the local unit might not be heading to much greener pastures for long," she said.

By 11:32, the rand was changing hands at R14.74/$.

"Local manufacturing production data is due for release today, while the US is set to release PPI data.The current support level at R14.80/$ will require some momentum to break through, while a new range of R14.76 to R14.88 can be expected."


11 Jun 08:36

Asian stocks, US futures climb; Treasuries Steady

Andreea Papuc, Bloomberg

Stocks advanced in Asia Tuesday with US futures as investor focus returned to the US-China trade arena, while Treasury yields steadied after Monday’s gains.

Equities climbed across the region with stocks in China outperforming.

Chinese local governments will have more room to spend on infrastructure, news investors welcomed after President Donald Trump threatened to raise tariffs again if President Xi Jinping doesn’t meet with him at the Group of 20 summit at month-end.

There were more modest gains in Japans, while Australian shares also gained. European futures ticked up. The yuan bounced off its lows of the year, while the yen retreated. Oil climbed back near $54 a barrel in New York.

Sentiment remains fragile as investors look to the G-20 summit in Japan as the next way-station in the trade dispute between the world’s two largest economies that has convulsed risk assets.

“The market will be a little volatile going into the G-20 just as you hear whispers around how trade negotiations are likely to unfold,” Caleb Silsby, Whittier Trust chief portfolio manager, told Bloomberg TV. It’s likely the market has priced in a “fairly decent resolution” on trade so any disruption would lead to increased volatility again, Silsby said.

Elsewhere, Mexico’s peso stabilised after posting its best day in almost a year - up more than 2% -- after the accord with the US late Friday.


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