G morning, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
On the wires… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Quote of the day | |||||||||||||||||||||||||||||||||||||||||||||||||||||
“I could tell my parents hated me. My bath toys were a toaster and a radio” ― Rodney Dangerfield | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The indicators | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency crackdown… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Even though we have the very expected Fed rate announcement (unchanged- vote 10-2)) last night, the markets have done very little. Look at the market movement since yesterday morning- yawn! It has done almost nothing across the board. Yesterday the rand traded in a 10c range but opened and closed at almost the same level. Movements against the other majors were also limited. Even the post rate announcement press statement was dull with a slight hawkish undertone. The Fed will continue to take their lead from incoming economic data, which is only to be expected.
Indicators: all market moves were limited. Gold is unchanged, while Brent is marginally lower. The $ is slightly weaker, but only. US equity markets were also slightly improved, with notable earnings miss by Alphabet, which closed 9% lower. Asian markets are mostly lower with the Kospi having shed -1.24% this morning. US futures are mixed, but it looks like tech might have a challenging day. Bitcoin is lower and is hovering just above the $80 000 level.
The rand remains out of the firing line right now, but we have some more big economic releases today. These releases will have an impact, but we doubt that the rate announcements from the ECB ( no change expected) and bank of Canada (52% expected hike) will. Geopolitically, air strikes are expected in Iran after the midterms. As we know, Trump never does what is expected, so any strike will drive OIL and the global inflation concern. This will also support the $ and the rand should take a punch. Overnight Brent prices settled slightly on rumoured negotiated attempts to prevent those strikes.
Although the rand seems meek and mild, it remains precariously close to the top of the 16.20- 16.80 range. A blip in the oil price will send it to test those highs. Today is not a lunch day. Stay close to the market, as economic releases will have an impact.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
On the radar… | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
Did you know? | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Johan Kriek is the only South African to ever win a Grand Slam tennis title. He won the Australian Open twice, in 1982 and 1983. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Have a good day,
Wayne Rosenberg
