On the wires…
- Turkey clears way for Finland, Sweden to join NATO – Stoltenberg
- G7 leaders have urged China to press Russia to pull forces out of Ukraine
- About 50 migrants dead in ‘horrific’ truck tragedy in Texas
- Eskom workers expected back at work as bargaining resumes – Gordhan
- Patients turned away from Cape Town military hospital after medical equipment breaks down
- Serena Williams out of Wimbledon after losing first-round thriller
Quote of the day…
“Yesterday’s home runs don’t win today’s games.” – Babe Ruth
The rand broke above the 16.00/$ level yesterday, giving up over 20 cents to end the day at 16.09/$ after investors soured on risky assets. This came after data showed that US consumer confidence had dropped to a 16-month low on fears that high inflation would cause the economy to slow in the second half of the year, while investors also continued to worry that major central bank hikes to rein in inflation could spark a recession. Also weighing on the local currency was Eskom’s decision to lift load-shedding to stage 6 as it struggled to come to an agreement with striking workers over wages. Eskom has since made a 7% wage offer in the hopes of getting things back up and running.
Elsewhere, the US dollar edged higher this morning to trade just below a two-decade high reached two weeks ago, with investors seeking out the safety of US assets. Meanwhile, the euro edged lower with investors disappointed that ECB chief Christine Lagarde didn’t offer any new insights on the path for European interest rates at the ECB’s annual forum. ECB policymakers are weighing up whether or not they should announce the size and duration of their upcoming bond-buying scheme, designed to curb financing costs for Italy and other debt-laden countries. It is set to make an announcement on July 21, along with its first interest rate hike in more than 10-years.
In other markets, Asian stocks extended upon overnight losses recorded in the US as inflation and recession concerns weighed on sentiment. Equities were initially in a buoyant mood following China’s surprise move yesterday to cut quarantine requirements for inbound travellers – seen as big shift from its zero COVID strategy to one that could cause less economic damage. However, the US consumer confidence release sent the S&P 500 down more than 2% and has now spread to other markets. In commodities, oil prices slowed after three consecutive days of gains but are still on track for a strong close this week on limited supply concerns. This comes after a report suggested that Saudi Arabia and the UAE would be unable to raise output significantly in the near future.
On the radar…
- All – Russia/Ukraine Crisis
- UK – BoE Governor Bailey Speaks
- US – Fed Member Mester Speaks
- US – Fed Chair Powell Speaks
- US – GDP
- EU – ECB Members Speak
Did you know?
At the center of every raindrop is an impurity, such as dust or soot It’s nearly impossible for raindrops to form from pure water.
Have a good day,
To subscribe to the Daily Dose, click here.