The Rand continued its slide last week as news emerged that Nationalising the Reserve Bank was discussed at the ANC conference.
Investors are not amused by the uncertainty the ruling party are creating, which is a recipe for further downgrades. And as mentioned in prior weeks, if our local currency and debt are downgraded we could see sustained Rand weakness. Bond yields would also spike as in... ››› more
US markets closed at record highs on Friday, helped by technology stocks like Apple, Facebook and Google. The strength of the US markets is filtering through to other developed markets and the victory by Emmanuel Macron in the French elections eliminates one more hurdle. Improving global sentiment bodes well for the weeks ahead.
The rise in technology stocks is playing out nicely for our inve... ››› more
Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case.
When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
Commodities take a step lower
Brent oil led the commodity basket lower last week, losing 8,1%; Platinum and Gold were down 5,7% and 2,4% respectively.
Although the Rand softened, the pressure was too much for the JSE All Share Index which fell 0,8%. Resources fell 5,5%, but the rest of the sectors held up well.
International indices were slightly softer across most time zone... ››› more
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