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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • Biden angers China with vow to defend Taiwan
  • Four million people hit by floods in Bangladesh: UN
  • WHO says no urgent need for mass monkeypox vaccinations
  • SARS floats new wage offer from savings, but ‘cannot afford’ union’s demands
  • Former health department head’s R30m fraud case postponed due to ill health
  • Bafana Bafana’s road to Afcon made a lot easier as Zimbabwe booted out of qualifiers

Quote of the day…

“What you do makes a difference. And you have to decide what kind of difference you want to make.” — Jane Goodall

The indicators…

Currency crackdown…

The rand had a strong session yesterday, closing out the day at 15.75/$ from an open of 15.88/$ as the currency continued to get a lift from the SARB’s 50 basis-point hike and S&P’s outlook upgrade last week. The currency also found some support from a softer dollar as well as firmer commodity prices, which helped the currency trade as low at 15.63/$ at one point. Despite the recent positive moves, the spectre of loadshedding, the Fed, COVID cases in China and the Ukraine conflict continues to loom over the currency and gains could prove to be short-lived.

The US Dollar struggled throughout yesterday falling roughly in-line with declining Treasury yields from multi-year highs with aggressive hiking by the Fed seemingly priced in already. The US Dollar was also hampered by some positive signs for global economy recovery as China looks to emerge from weeks of paralyzing Covid-19 lockdowns. US President Joe Biden also made some comments of possible easing in the trade war between China and US. Overnight the US Dollar was able to claw back some gains on the back of a profit warning from Snapchat which negatively impacted the mood in Wall Street after its strong start to the week. With a very light economic calendar on the cards for US, markets are looking to the release Wednesday’s FOMC minutes where investors will keep a close eye on Fed comments for more insight on their aggressive stance on interest rate hikes.

Elsewhere Asian markets traded slightly weaker with China assisting sentiment after easing Covid-19 lockdowns. Looking at commodities gold and oil traded relatively flat with oil showing slight weakness on the back of a potential easing of bans on Russian oil.

On the radar…

  • All – Russia/Ukraine Crisis
  • All – Covid 5th Wave
  • US – New Home Sales
  • US – Fed Chair Powell Speech
  • EU – S&P Global Manufacturing & Services PMI
  • UK – S&P Global Manufacturing & Services PMI
  • US – S&P Global Manufacturing & Services PMI
  • EU – ECB President Lagarde Speech

Did you know?

The International Space Station is closer to Earth than San Francisco is to Los Angeles.

Have a great day,

Keaton

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