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Daily Dose

Daily Dose

Good Morning,

On the wires…

  • Boris Johnson’s replacement to be announced on 5 September
  • Pakistan’s largest city flooded in latest bout of torrential rain
  • EU bracing for wave of migrants as ongoing food crisis takes a toll on Africa, Middle East
  • Load shedding could end in 10 days, but risks remain
  • Hermanus mom shot dead on way to work, 10-year-old daughter and husband wounded
  • Wales lose winger Cuthbert for Springboks series decider, doubts over skipper Biggar

Quote of the day…

“Everyone wants to live on top of the mountain, but all the happiness and growth occurs while you’re climbing it.” – Andy Rooney

The indicators…

Currency crackdown…

The rand remains under pressure with risk off sentiment dominating the market. During the course of yesterday’s trading session the rand continued its slide, extending losses beyond the 22-month high it reached against the dollar last week after finally break through the 17/$ level. The local currency isn’t alone, with its emerging market peers also getting battered as investors flee to the safety of the dollar and US Treasuries as recession fears continue to mount, while the euro has provided little resistance to the dollar’s rally as it hovers around parity – reaching it for the first time since 2002 yesterday. The rand has also been weighed down by heavy selloffs in commodities and domestic issues hampering any thoughts of SA being an attractive destination for foreign capital.

Elsewhere, the US Dollar continues to derive strong support from the depressed risk environment and as the euro continues to lose ground, with Europe struggling immensely with energy stability and fears that it will struggle to bounce back from a potential recession. Sentiment around the energy crisis in Europe has taken a further hit, with the biggest single pipeline carrying Russian natural gas set to undergo annual maintenance which is expected halt supply for at least 10 days. On the data side of things markets will remain focused on US consumer inflation due on Wednesday as well as comments from Fed officials where investors are looking for clues to see if the Fed will intensify their already aggressive pace of interest rate hikes.

Looking elsewhere Asian markets dipped after China introduced new COVID-19 restrictions to contain new infections after finding a highly-transmissible Omicron subvariant. On the commodities side gold weakens on the bank of a stronger US Dollar while oil prices dropped amid demand concerns on the back of China’s new restrictions and global economic slowdown fears.

On the radar…

  • All – Russia/Ukraine Crisis
  • ZA – Manufacturing Production MoM & YoY
  • UK – BOE Gov Bailey Speech
  • EU – ZEW Economic Sentiment
  • US – Fed Barkin Speech

Did you know?

Players have collectively spent more than 25 billion hours (2.85 million years) playing “Call of Duty”. Longer than the course of human existence

Have a great day,

Keaton

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