Rand update
The rand traded steadily in a R15.00/R15.13 range but did close weaker at the top of the day's range. The rand is trading flat at R15.10 this morning despite a softer dollar, and we are likely to continue in a R15.00/R15.20 range for now.
Yesterday was a bloodbath on the commodity front, with Gold falling by 1.7%, Platinum down by 4.5%, and Copper down by 2.5%. Palladium was a huge 16.2% down at one point yesterday before closing 14.6% weaker on the day. This morning sees Gold a further 1.0% weaker at $1,932, Platinum down another 0.35% at $1,026, while Palladium is trading 1.0% stronger at $2,410. Brent crude corrected by a further 5.5%, closing at $106.90 last night as markets eyed the Russia/Ukraine talks and concerns over reduced demand out of China. This morning we have Brent down further at $102.00 while WTI is trading at $98.18.
US Treasury yields surged overnight ahead of tomorrow's FOMC interest-rate decision. The 30y-yield is up at 2.48%, the 10y-yield at 2.14%, and the 2y-yield is up at 1.87%. This morning, the DXY index has slipped below the 99.00 level as the dollar retreats from last night's stronger closing prices. The greenback is currently trading softer at 1.0984 and 1.3040 against the euro and pound, respectively, while it is stronger against the Yen at 118.37.
The S&P and the Nasdaq both closed weaker last night while the Dow was flat. US futures have opened marginally in the green this morning, but Chinese stock markets continue to bleed. The Hang Seng is down 3.79%, and the Shanghai is 3.06% weaker. The JSE's ALSI lost 2.42% to close at 71,904 as Naspers and Prosus fell sharply due to Tencent's regulatory problems in China. Look out for US PPI data out later today.
