Markets LIVE: Rand closes at R15.30/$

USDZAR 15.3088

EURUSD 1.1094

EURZAR 16.9737

GBPUSD 1.2266

GBPZAR 18.7669

AUDZAR 10.3344

CADZAR 11.5384

CNYZAR 2.1373

ZARJPY 6.9233

CHFZAR 15.5752

R186 8.23%

US 10 Year 1.50%

JSE 0.17%

FTSE 0.20%

S&P 500 0.38%

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Oil advances amid mixed signals on US-China trade dispute

Heesu Lee and Grant Smith, Bloomberg

Oil rose after four days of losses as President Donald Trump gave mixed signals on resolving the trade dispute between the US and China.

Futures in New York increased as much as 1.3% after falling 4.8% over the previous four sessions. Trump struck a more conciliatory tone at the Group of Seven meeting in France, praising the willingness of China’s top trade negotiator, Vice Premier Liu He, to find a solution to the dispute.

However, he didn’t indicate he planned to back down in the prolonged dispute. Equity markets retreated on Tuesday.

While de-escalation and the expectation of a temporary truce in the trade war may be what is lifting sentiment and oil prices this morning, the resolution of the US-China rift will take time,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London.

“Economic uncertainty has not been lifted, which still leaves a fair degree of hesitancy in going long oil.”

Crude is still down around 8% this month as the trade war weighs on the demand outlook for oil.

The dispute has yielded little progress after more than two years of steady escalation, and countered the efforts by the Organization of Petroleum Exporting Countries and its allies to boost prices by cutting production.

Stocks dip with US futures as trade mood shifts

Andreea Papuc and Laura Curtis, Bloomberg

European stocks declined along with US equity futures on Tuesday as investors showed skepticism over the ever-changing China-trade narrative.

The yen climbed with gold and Treasuries.

The Stoxx Europe 600 slipped as data showed Germany was on the brink of recession, while contracts on the three main US indexes fell. Except for Hong Kong, Asia shares climbed broadly and recovered some of Monday’s losses, led by gains in Shanghai.

US stocks climbed Monday after President Donald Trump said prospects for a trade deal with China were better than ever, without indicating he planned to back down in the bitter dispute.

The UK’s FTSE 100 Index declined as traders returned from a three-day weekend. The dollar edged lower.

Rand buoyed by hopes of a potential Sino-US trade deal - NKC Economics

The randy traded on the front foot yesterday on hopes that Sino-US trade tensions could soon be defused.

The local unit recovered from its weakest level in nearly a week after China, on August 23, announced retaliatory trade tariffs on US imports which lead to an escalation in the trade war.

At close of local trade, ZAR quoted 0.77% stronger at R15.23/$, after trading in range of R15.19/$ - R15.44/$.

ZAR dipped weaker overnight. Expected range today R15.15/$ - R15.45/$.

Trade hope helps Asian markets bounce back from sell-off

Asian markets rose Tuesday, recovering from the previous day's pounding, after Donald Trump said China-US trade talks would resume soon, though the president's sharp changes in tone are keeping investors on edge.

Regional equities tanked and the yuan plunged Monday in response to news at the weekend that Washington would hike tariffs on more than half-a-trillion dollars of Chinese imports after Beijing unveiled levies on tens of billions of US goods.

Trump's call for US firms to pull out of China and comments about not needing the country added to the sense of dread that the trade war would deepen and run for some time.

However, investors who had run to the hills in the morning returned in later trade after he said in a G7 news conference in France that negotiations would resume very soon and Beijing had telephoned saying it wanted to strike a deal.

Rand claws back losses

"Following the shockwaves that an escalated trade war sent through markets, the rand managed to hold its ground, trading rangebound throughout Monday," treasury partner at Peregrine Treasury Solutions, Bianca Botes noted in a market update.   

"Some relief came as US President Donald Trump adjusted his tone towards China, indicating that a trade deal is a desire of both the US and China.  

"The rand gained some momentum on the back of the modified tone, reaching a high of R15.17/$ just before the close of local markets, but overnight trade has seen the rand weaken somewhat," she added.

"We start the day on a better footing than yesterday, with the rand trading at R15.26/$, R16.96/€, and R18.65/£.