On the wires…

• Found with R385k in his safe, ‘bag man’ Nkosi claims he was keeping cash for his brother.
• Trump administration mulls large troop deployment to Middle East in new phase of Iran war.
• Europe tells Trump Iran is ‘not our war’.
• At least 80 insurgents killed as Nigerian troops repel base assault, military says.
• DeChambeau-proofing Steyn City? Altitude, kikuyu grass set to test LIV Golf stars.
• Own goal from CAF: Referee’s decision is final, say ex-SAFA bosses in Afcon final fiasco.

Quote of the day

“One of the hardest things for any human to do is to be human.”— Simon Sinek

 The indicators

Currency crackdown…

The rand came under significant pressure during yesterday’s session, weakening sharply as geopolitical tensions drove a flight to safety. USD/ZAR opened the local session around R16.61/$, with markets initially trading cautiously. However, escalating headlines from the Middle East triggered a rapid sell-off in the local unit, pushing the pair to highs near R16.80/$ by the close. The negative momentum extended into the overnight session, with the rand slipping further to trade around R16.99/$ this morning. The move reflects a broader risk-off environment, where emerging market currencies bore the brunt of shifting investor sentiment.

A key driver of the rand’s weakness has been the sharp surge in oil prices, which has amplified inflation concerns and weighed on oil-importing currencies such as the rand. Prices climbed above $100 per barrel, moving closer to recent highs, following reports of a strike on Iran’s South Pars gas field and subsequent retaliatory attacks by Iran on Qatar’s LNG infrastructure. These developments have intensified fears of supply disruptions in one of the world’s most critical energy-producing regions, adding a significant risk premium to oil and further undermining sentiment toward the rand. Commodity markets reflect the same uncertainty. Gold has stabilised after a sharp sell-off earlier in the week, supported by dip-buying as investors seek safe-haven assets amid rising inflation and geopolitical risks.

Key data releases today are muted locally, however globally there are releases to watch out for – markets will be keeping a close eye on upcoming U.S. economic data, particularly initial jobless claims, and new home sales, as these will offer fresh clues about the strength of the U.S. economy. In Europe, attention will shift to the European Central Bank’s latest decision on its refinancing and deposit rates, which could influence sentiment across global market. Meanwhile, in the UK, investors will be watching the Bank of England’s interest rate decision, along with the latest ILO unemployment figures, for signals on the direction of the British economy.

On the radar…

Did you know?

Nikita Govender