By Andre Botha, Senior Dealer, TreasuryONE
Global equity markets had a positive day yesterday after the sell-off on Friday however, Covid-19 fears continue to hang over markets. The Dow was up 3.19%, the S&P up 3.35% and the Nasdaq up 3.62%. The JSE All-share managed a 1.56% bit the banking stocks took a hit yesterday after the Moody’s downgrade.Asian stocks are trading higher this morning. US futures are currently a touch in the red.
The currency markets are fairly flat this morning with the Dollar trading at 1.1012 against the Euro and 1.2335 against the Pound. Better than expected Chinese manufacturing data for March has boosted Asian markets. China’s manufacturing PMI came in at 52.0 against an expected 45.0. The Rand initially weakened to record 18.0700 levels in reaction to the downgrade of South Africa’s sovereign debt rating but steadied thereafter to spend most the day trading between 17.8500 and 17.9800. Analysts seem to split on the exact outflow that will be seen as a result of South Africa’s exclusion from the World Government Bond Index with forecasts ranging from $4 billion to $11 billion. The consensus seems to be around the $6 billion mark. This could see the Rand weaken further in the next few months.
Oil remains firmly on the backfoot on very low global demand and continued oversupply. Brent is trading at $22.95 this morning. Gold is holding steady at $1 616.90 in Asia today.