JOHANNESBURG - The rand edged up on Tuesday as risk appetite improved after President Donald Trump offered reassurance that a US trade deal with China was on track, quelling market concerns that Washi
ngton may be ditching the agreement.White House trade adviser Peter Navarro said his comments that the trade deal with China was “over” were taken out of context. Trump chimed in, saying the Phase 1 trade deal struck with China in January was fully intact.
Locally, on the radar is Finance Minister Tito Mboweni’s emergency Budget in response to the COVID-19 crisis due on Wednesday that is expected to show a markedly wider Budget deficit. “Given how the emergency Budget has little fiscal space to manoeuvre, Mboweni is walking on the tightest of ropes,” Lukman Otunuga, senior research analyst at FXTM, said in a note.
“Whatever the outcome of the speech tomorrow, it will certainly have an impact on the South African rand which has slightly gained against the dollar today.” Trump’s assurances boosted markets globally, including the Johannesburg Stock Exchange . The benchmark FTSE/JSE all share index closed up 2.48% to 55,574 points and the top 40 companies index gained 2.84% to end the day at 51,295 points. Gold continued to be a preferred safe-haven investment due to a fear of a rebound in coronavirus cases with the JSE’s gold index up over 6%.Download the EWN app to your iOS or Android device.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WATCH: Rand advances against the greenbackThe rand clawed back some losses after second wave coronavirus infection fears across the globe clipped risk assets during the previous session according to NKC Research. busrep
Read more »
Rand slips amid worry about a second waveThe local currency is weaker as investors remain cautious amid the fear of a second wave of Covid-19 infections
Read more »
Rand set for third day of gains on good global economic dataThe local currency was firmer as global risk appetite improved following positive economic data from the eurozone
Read more »
MARKET WRAP: Local markets subdued as investors await budgetGlobal market sentiment has been damped by fears of a second wave of Covid-19 infections, which could delay economic recovery
Read more »
Debt stabilisation key to a sound supplementary budget, DA saysIf debt is not constrained in the long term, debt service costs will crowd out the provision of basic services, the party has warned
Read more »
PETER ATTARD MONTALTO: The chatter before a budget speech always gets it wrongWhat matters are the credibility gaps, not the fiscal measures that the Treasury announces
Read more »