The Reserve Bank kept the repo rate at 3.50% as expected yesterday, while local retail sales declined by 4.0% in November. The Rand, which had traded strongly up to the SARB’s announcement, weakened in late afternoon trade to close at 14.9347. This morning the Rand has fallen further and is currently quoted at 15.0000 as all EM markets have given back some recent gains. This comes despite the Dollar weakening further against the other majors, the Scandinavian currencies, the Aussie and Kiwi Dollars overnight.
The Gold price has eased slightly, trading at $1 863 this morning, while Platinum is softer at $1 119 and Palladium flat at $2 372. Oil is trading around 1.0% lower today at $52.54 for WTI and $55.60for Brent crude. The record rise in global infections and fatalities is unnerving the Oil market.
The ECB kept interest rates on hold and promised further stimulus if required yesterday, while US jobless claims rose by 900k. The Dollar closed weaker yesterday in New York and is trading a touch softer this morning at 1.2173 against the Euro and 1.3715 against the Pound, with the DXY slipping to 90.103. US Treasury yields are up today at 1.111% for the 10y bond and 1.874% for the 30y bond. The S&P and Nasdaq closed at record highs while the Dow was marginally negative on the day. US futures are currently all in the red along with Asian stocks.