Markets WRAP: Rand closes at R13.84/$ | Fin24
 
  • Cadre Cover

    The ANC is planning to launch a funeral policy scheme for members and supporters.

  • VBS Collapse

    Ramaphosa has acknowledged South Africans' impatience to see justice done.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Markets WRAP: Rand closes at R13.84/$

2019-07-22 09:45

The day's range was between R13.82 to R13.97.

Financial data analysis graph showing global marke
LIVE NEWS FEED

Jump to
bottom

Last Updated at 13:41
22 Jul 17:02

The rand closed at R13.84 to the greenback on Monday afternoon.

The day's range was between R13.82 to R13.97.

TreasuryONE said in a note to clients that the USDZAR was on its own today, opening R13.94 and strengthening throughout the day.

"The rest of the emerging market currencies was slightly weaker and flat for the day. Gold and other major currencies also not doing much today as the markets were quiet today.

"EURUSD has traded in a 15 point range for the day, between 1.1210 to 1.1225. Later the week the ECB meeting can be a key catalyst before the FED next week. For now the range of R13.80 to R14.05 still very much the order of the day."


22 Jul 15:40

OVERVIEW: US stocks opened higher following a mixed session in Europe and Asia as investors looked ahead to a busy week of corporate earnings. Oil gained amid tensions in the Persian Gulf. The three main US benchmarks all were green, while the Stoxx Europe 600 Index edged higher with energy and mining shares leading gains.

Stocks slipped throughout Asia, led by declines in Shanghai and Hong Kong as traders watched escalating tensions there. China’s new stock venue for technology startups was a bright spot as all 25 stocks rose on their debut. Treasuries advanced after traders pared bets the Federal Reserve will slash rates by a half-point this month.

“With consensus analysis having slashed projections for the quarter before the start of the earnings season there’ll likely be a decent chance for enough positive surprises over the course of the next few weeks to see earnings growth stay positive over the season,” John Stoltzfus, the chief investment strategist at Oppenheimer & Co, wrote in a note to clients.

“More than a quarter of the companies in the S&P 500 are scheduled to report this week so investors will have plenty to focus on.”

Core European government bonds gained, while the pound slumped after a forecast showed Brexit may have already pushed the UK into a technical recession, and as Conservative Party members vote on new leadership. Investors will be eyeing earnings this week for signs of economic slowdown and any indication that trade strife is affecting companies’ bottom lines.

On the trade front, Chinese state media reported face-to-face negotiations with the US may resume soon, as Beijing considers a plan to boost American soybean purchases to sweeten a deal, people familiar with the matter said. The Fed, meanwhile, is in a blackout period with regard to policy communications ahead of next week’s interest rate decision.

Elsewhere, gold was steady while emerging-market stocks slid.

These are the main moves in markets:

Stocks

The S&P 500 Index rose 0.2% as of 09:32 New York time. The Nasdaq Composite Index gained 0.4% and the Dow Jones Industrial Average climbed 0.2%. The Stoxx Europe 600 rose 0.1%. The MSCI Emerging Market Index eased 0.2%. The MSCI Asia Pacific Index dropped 0.5%.

Currencies

The Bloomberg Dollar Spot Index rose less than 0.1%. The euro was little changed at $1.1222, while the yen weakened 0.2% to 107.93 per dollar. The British pound fell 0.2% to $1.2472. The MSCI Emerging Markets Currency Index was little changed.

Bonds

The yield on 10-year Treasuries eased 3 basis points to 2.03%. Germany’s 10-year yield dropped 2 basis points to -0.34%. Britain’s 10-year yield fell 2 basis points to 0.72%.

Commodities

West Texas Intermediate rose 0.5% to $55.90 a barrel. Gold increased 0.1% to $1,426 an ounce.The Bloomberg Commodity Index was little changed. - Bloomberg


22 Jul 14:57

SA allocates Eskom extra R59bn over two years

Mike Cohen, Bloomberg 

South Africa will give ailing state-owned power utility Eskom an additional R59 billion spread over two years, according to a copy of a special appropriations bill seen by Bloomberg.

Eskom will get R26 billion of the money this financial year and R33 billion in 2020-21.

President Cyril Ramaphosa announced plans for additional funding for the struggling company last month, without providing details. Finance Minister Tito Mboweni was due to announce the proposal on Tuesday. The funds will come from the Revenue Fund, according to the bill.

The government had already approved a R69 billion, three-year bailout for the debt-laden company in February.

Eskom has debt of R440 billion and is regarded as the biggest risk to South Africa’s economy. The government has been under pressure to finalise plans to fix the business. A spokesperson for National Treasury wasn't immediately able to comment.


22 Jul 14:32

Global stocks trade mixed; JSE falls 

Bloomberg and Fin24 

Global stocks were mixed on Monday as investors weighed fresh developments in the outlook for monetary policy and a new round of corporate earnings. Oil gained amid tensions in the Persian Gulf.

The Stoxx Europe 600 Index was little changed, buoyed by energy and mining shares, while US equity futures ticked higher. Stocks slid across Asia, with traders in Hong Kong watching escalating tensions there, though China’s new stock venue for technology startups was a bright spot as all 25 stocks rose on their debut. Treasuries and the dollar were steady after traders pared bets the Federal Reserve will slash rates by a half-point this month, following comments from St. Louis Fed President James Bullard on Friday.

The JSE All-Share index was down 0.5% at 14:15. The rand, meanwhile, firmed 0.57% against the dollar. 

This week sees the US earnings season ramp up, while the Fed is in a blackout period with regard to policy communications ahead of next week’s policy decision.

Trade remains in the picture as Chinese state media reported face-to-face negotiations between the top Chinese and US trade negotiators could happen soon.

“The start of earnings season has been very positive, but the price action on the major indexes has not been,” said Edward Moya, a strategist at Oanda Corp. “It appears markets are waiting to break and this could be the week that happens.”


22 Jul 12:21

Rand stable in morning trade 

The rand was stable against the dollar in morning trade on Monday. 

The local currency opened at R13.923/$ and was changing hands at R13.91 to the greenback at noon. 

In a note to clients on Monday morning Bianca Botes of Peregrine Treasury Solutions said the rand's focus "remains on the anticipated Federal Reserve interest rate cut". 

The SA Reserve Bank cut the repo rate by 25 basis points on Thursday, partly in the expectation that the US Fed would cut rates. 


22 Jul 09:45

Global stocks trade mixed; oil gains amid Iran tensions

Adam Haigh and Laura Curtis, Bloomberg 

Stocks were mixed on Monday as investors weighed fresh developments in the outlook for monetary policy and a new round of corporate earnings.

Oil gained amid tensions in the Persian Gulf.

The Stoxx Europe 600 Index was little changed, buoyed by energy and mining shares, while U.S. equity futures ticked higher. Stocks slid across Asia, with traders in Hong Kong watching escalating tensions there, though China’s new stock venue for technology startups was a bright spot as all 25 stocks rose on their debut.

Treasuries and the dollar were steady after traders pared bets the Federal Reserve will slash rates by a half-point this month, following comments from St. Louis Fed President James Bullard on Friday.


22 Jul 09:45

Oil advances as Iran's seizure of tanker keeps tension high

Oil extended gains as tensions in the Persian Gulf remained elevated after Iran seized a British tanker, and Libyan production fell after an unidentified group reportedly shut the country’s largest field.

The UK demanded the immediate release of the Stena Impero, which was seized by the Islamic Republic in the Strait of Hormuz on Friday, but Defense Minister Tobias Ellwood said in a Sky News Interview that he wanted to de-escalate the situation.


Jump to
top

 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...