Today The SA market should firm marginally (+0.2%) as the rand eased overnight and US markets closed up as consumer spending climbed and corporate earnings beat estimates. Markets should be quiet at the offset as most Asian markets are closed for Lunar New Year. The rand is trading at R11.1980/$, R15.1597/€ and R18.4453/£ as of 08h03 in Johannesburg. Gold is headed for the first weekly loss since December as signs of faster US economic growth increased bets that the Federal Reserve will keep cutting stimulus and a decline in emerging markets eased. Asian stocks struggled to push higher but did get some momentum from data showing strong US growth and calming emerging market nerves after several days of turmoil. Turkey’s currency and stocks erased losses, with the lira set for a 10-day high versus the dollar, as Finance Minister Mehmet Simsek ruled out capital controls and Russia’s central bank intervened to support the ruble. Yesterday The JSE closed lower as rate-sensitive shares were sold amid concerns that rates could be hiked further after the Reserve Bank’s surprise interest rate hike of 50bps on Wednesday. South African bonds were mixed in late trade, with losses extended on shorter-dated bonds as the market repositioned itself after the 50-basis-point rate hike. The rand clawed back ground against the dollar after earlier skidding to fresh multi-year lows a day after a domestic rate hike. European stocks rose, paring this month’s loss for the Stoxx Europe 600 Index as companies from Givaudan SA to Hennes & Mauritz AB reported upbeat earnings. US stocks rebounded, erasing this week’s loss for the Standard & Poor’s 500 Index, as earnings beat estimates at companies from Facebook Inc. to PulteGroup Inc. and consumer spending picked up.
Posted on: Fri, 31 Jan 2014 06:32:09 +0000
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