By Andre Botha, Senior Dealer, TreasuryONE
President Cyril Ramaphosa outlined an R500 billion relief and stimulus package last night aimed at supporting small businesses as well as the poor. He further revealed that Treasury has had talks with the World Bank, the IMF, the BRICs Development Bank and the African Development regarding funding for Coronavirus relief. Further detail will be provided by Tito Mboweni in due course.
The Oil price woes continue to dominate markets as Brent crude falls to 20-year lows this morning. Brent is currently quoted at $16.46 in the Far East. Global stock markets fell heavily yesterday and this morning Asian stocks are all in the red. The JSE All-share lost 2.5% yesterday, led by the Resources sector after big dips in the Platinum and Palladium prices. Gold, however, is still fairly steady at $1 686.45 this morning while Platinum is at $748.78 and Palladium at $1 976.85.
The Dollar is holding it’s firmer levels against the Euro and Pound while the Rand is trading weaker at 19.0600 as EM currencies are sold off in Asia this morning. The plunge in the Oil price has unsettled investors and there is a definite risk-off mood at the moment.
