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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • US to send $700m weapons package to Ukraine as Russian forces forge ahead in eastern regions
  • Europe will ban insurance for Russian oil cargoes in biggest blow yet to Putin’s war machine
  • Crypto developer ‘Fluffypony’ to be extradited to SA to face R1.4 million fraud charge
  • Public Servants’ Association suspends strike at SARS
  • US equity firm finally takes stake in All Blacks
  • Sponsor RBC drops Johnson, McDowell over LIV defection

Quote of the day…

“The best way to predict the future is to invent it” – Alan Kay

The indicators…

Currency crackdown…

Our rand did see some strength yesterday, clawing back roughly 0.30% from the dollar to hover around the 15.50 mark. Despite the release of stronger-than-expected US manufacturing data yesterday, the US dollar index shows that the dollar gave back 0.12% this morning after climbing almost a percent yesterday. This positive US data put more pressure on the euro, which is still nursing losses following Tuesday’s soaring euro zone consumer inflation data. The rand opened 18 cents stronger against the euro this morning, and around 24 cents stronger against the pound – the market seems to have reignited some interest in the rand for investors seeking exposure to emerging market currencies.

Local bonds endured a volatile session yesterday, closing slightly higher than they opened, while US yields continued to push higher (US 10 year up to 2.91%). This came as inflation fears were stoked again by a 50bps rate increase by the Canadian Central Bank yesterday afternoon – which was largely expected. On the equities front, the SA Top 40 may have conceded 1.82% during yesterday’s session but has still had a strong weekly performance – this is more of a correction than anything.

Gold held its gains throughout yesterday’s session as increasing fears of a recession in the world’s largest economy burnished its appeal as a safe-haven asset. The yellow metal remains resilient despite pressure from slightly higher US Treasury yields and a firmer dollar. Oil fell around $4 per barrel as investors cashed in on the recent rally, with OPEC and its allies expected to meet later in the day to possibly pave the way for expected output increases.

On the radar…

  • All – Russia/Ukraine Crisis
  • EU – PPI
  • US – OPEC Meeting
  • US – ADP Nonfarm Employment Change
  • US – Initial Jobless Claims
  • US – Factory Orders
  • US – Crude Oil Inventories
  • US – Fed Member Mester Speaks

Did you know?

Donating blood at least once a year can reduce your risk of a heart attack by 88%

Have a great Thursday,

Kyle

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