Tito Mboweni’s budget appears to have been relatively well-received by markets, with the Rand initially firming to 14.4000 levels post the speech. The Rand had a bit of a rollercoaster ride thereafter, spiking up to 14.6500 before closing stronger at 14.4887 as the Dollar slipped further against the majors. The local currency is currently trading unchanged at 14.4925 in the far East. The main positive takes from the budget are improved revenue receipts, debt stabilization, improved growth outlook, and expenditure control. Time will tell whether this will play out as planned.
Precious metals are trading softer this morning, with Gold slipping back below $1 800 on the back of rising US Treasury yields. Gold is currently quoted at $1 799, while Platinum is down at $1 268 and Palladium down at $2 428. Oil rallied last night, with Brent breaking above $67.00 and WTI above $63.00. Currently, WTI is trading flat at $63.15 and Brent unchanged at $67.11.
The Dollar continues to trade on the backfoot as the Fed confirms that its dovish monetary policy stance will not change any time soon. The DXY has fallen below 90.000 this morning as the Dollar trades weaker against the Euro and Pound at 1.2184 and 1.4170, respectively. US Treasury yields are higher today, with the 10y having risen to 1.403% and the 30y to 2.27%. Wall Street staged a fairly strong recovery yesterday with the S&P up 1.14%, the Nasdaq up 0.99%, and the Dow up 1.35%. US futures are currently in the green, and Asian-Pacific markets are showing strong gains. The local ALSI gained 0.42% to close at 66,201, although at one point yesterday, it was up by over 1.5%. Today we have the release of the weekly US jobless claims number.