Rand loses momentum

The rand was hit by a sell recommendation while caution reigned in the run-up to the US CPI print, according to NKC Research.

JP Morgan’s selling recommendation elicited a fallback in the local unit in an otherwise quite thin economic calendar. In fact, the only data release during the US session was the August CPI, while the blackout period surrounding next week’s FOMC meeting already began this past weekend, so there are no Fed speakers.

At the close of local trade, the rand quoted 0.9 percent weaker at R14.27/$, after trading in range of R14.13/$ – R14.32/$. The rand ticked lower overnight. The expected range of the rand against the dollar today is R14.20/$ – R14.50/$.

South African bourse

Gains in financial (+1.6 percent) shares were offset by losses in resources (-2 percent) and industrials (-0.5 percent), which saw the JSE All Share (-0.5 percent) close lower yesterday. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.4 percent) traded negative.


Brent crude oil

The IEA, in contrast to Opec, said crude demand would rebound for the remainder of the year. Another tropical storm, Nicholas, brought heavy rain and power outages in Texas, but less damage was caused to energy infrastructure than when Hurricane Ida passed through. Brent oil prices traded little changed yesterday but pulled back slightly at the close of local trade as benchmark Brent crude futures quoted 0.5 percent lower at $73.68pb. Crude prices traded on the front foot during Asian trade this morning.


Source: iol.co.za