Rand Stronger after Lower US Treasury Yields

  • Market Overview

The rand continued to firm, and the local bourse closed up on Wednesday after lower US Treasury yields and as China dedicated to aid South Africa with its energy crisis. The rand traded at R18.48/USD at 18h10, while the FTSE/JSE All Share Index closed up by over 1% after gains in the resources and financial sectors. “During the BRICS summit, South Africa and China signed deals covering emissions technology, electricity transmission and distribution, and nuclear power as part of the South African government's efforts to tackle the country's energy crisis. On the data front, South Africa's headline inflation slowed more than anticipated to a two-year low of 4.70% in July,” Trading Economics added.

Wall Street was trading in the green at 18h00 as the “prospect of robust results from US chipmaker Nvidia (NASDAQ: NVDA ) lifted market sentiment ahead of the Federal Reserve's annual economic symposium in Jackson Hole , where Fed Chair Jerome Powell is expected to offer fresh insights into monetary policy,” stated Trading Economics. European investors’ expectations for monetary policy discussions at this week’s Jackson Hole Symposium also boosted markets on the continent.

Asian markets were mixed, with the Shanghai closing down, while the Nikkei and Hang Seng closed in the green. “An earnings recovery among Chinese tech giants lifted risk appetite, with shares of Baidu Inc (NASDAQ: BIDU ). rallying over 4% after its revenue rose the most in more than a year,” Trading Economics reported.

The price of oil decreased further, trading at $83.32 a barrel at 18h15, while gold traded at $1 918.63 an ounce at the same time.

PSG Wealth Daily Investment Update, 24 August 2023

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