Market Commentary: Rand Strikes R12.00, Global Equities Lower

On Monday the South African Rand traded back above the R12.00 level as a ratings review by Moody’s drew closer. Adding to the pressure on the currency were the debates around land expropriation without compensation, an issue that has international investors questioning the stability of the local economy while the strength in the US Dollar fueled weakness in the local unit. As well as weakening versus the Greenback, the rand also eased against the British Pound as an agreement between the European Union and the British Government around the transition period saw the Pound surge as the UK equities trading session got underway.

The JSE ended the session flat as mixed trading action kept the All Shares Index range-bound. Under the hood, resources were down by 1.28% as the result of a stronger US Dollar, Financials gained 0.09%, while industrial shares managed to add 0.42%.

In currencies, the South African Rand trades as follows:

USDZAR +0.02% to 12.02
GBPZAR -0.04% to 16.85
EURZAR +0.05% to 14.83

Gold trades at $1315, Platinum at $954 while Brent Crude Oil is at $66.27.

International Markets

This morning, Asian equities are as follows:

Nikkei 225 (-0.72%)
Hang Seng (-0.63%)
Shanghai Composite (-0.26%)

US Markets closed as follows:

Dow 30 (-1.35%)
S&P500 (-1.42%)
Nasdaq 100 (-1.84%)

FANGs:
Facebook (-6.67%)
Amazon (-1.70%)
Netflix (-1.56%)
Google (-3.16%)

Alibaba closed the trading session in negative territory, up 1.07% while Tencent is lowe (0.35%) today in Hong Kong afternoon trade.

FTSE mining:
AGL (-4.21%)
BHP BIL (-3.78%)
Glencore (-4.21%)

 

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