Markets WRAP: Rand closes at R14.22/$

Rand closes at R14.22/$

The local unit which opened at R14.02/$ on Friday morning weakened by more than 1.5% during the day's session trading as low as R14.27/$.

The currency weakened on the back of improved US non-farm jobs data.

"The resilient employment figures, coupled with growth of 3% will likely cause the Fed to reconsider its interest rate outlook and potentially move the central bank into more hawkish terrain, decreasing the likelihood of an aggressive rate-cutting cycle," said Bianca Botes, treasury partner of Peregrine Treasury Solutions.

The rand closed at R14.22/$.

Rand slides as prospects of Fed rate cut subside 

Positive news for the US has meant a substantial slide for the rand. "The rand has lost just over 1% since opening this morning, as US non-farm data indicates an increase in jobs of 240k compared to the expected 160k," notes Bianca Botes, Treasury Partner at Peregrine Treasury Solutions.

Earnings, however, remain flat, while unemployment adjusted marginally higher to 3.7% from 3.6%, she added. 

Botes further noted that the resilient employment figures, coupled with growth of 3%, would likely cause the Fed to reconsider its interest rate outlook and potentially move the central bank into more hawkish terrain, decreasing the likelihood of an aggressive rate cutting cycle.

At 15:40pm, the rand was trading at R14.25/$, down 1.55% on the day. 

Gold heads for the longest stretch of gains in 8 years

Gold is headed for the longest stretch of weekly gains since 2011 as investors count down to the release of a highly-anticipated US jobs report that could provide clues on the Federal Reserve’s interest rate path.

Bullion’s higher for the seventh week as investors bet on looser policy from the central bank after signs of a slowdown. The non-farm payrolls data later Friday is projected to show a rise of 160 000 in June, and while that would up from 75 000 a month earlier, it’d be lower than the rise a year earlier.

Global stocks mixed ahead of US jobs data

Laura Curtis, Bloomberg, with Fin24

European stocks declined, US futures were steady and bonds were mostly in a holding pattern as investors await the key American jobs report. The dollar strengthened and crude oil fell.

The rand was trading 0.5% weaker against the dollar at 10:35, while the JSE All-Share fell by 0.25%. 

The Stoxx Europe 600 retreated at the end of a bullish week and the euro slipped after German factory orders came in far weaker than expected. S&P 500 index futures were flat along with shares across Asia, though benchmarks in Tokyo and China rose.

Australian equities advanced. The 10-year Treasury yield was steady near a two-and-a-half-year low. Gold slipped, though still headed for the longest stretch of weekly gains since 2011.

Royal Bafokeng Platinum slams allegations of fraud against its directors

Royal Bafokeng Platinum has hit back at allegations of unethical conduct by its directors.

The platinum miner on Thursday issued a notice to shareholders, shortly after markets closed, in response to a report by The Star that the South African Institute of Chartered Accountants (Saica) is investigating six of Royal Bafokeng Platinum's (RBPlat) board members for allegedly trying to defraud a firm – Ithemba Consulting.