Rand’s record-busting slump may not be over, options suggest Fri, 03 Apr 2020 20:59:51 +0200
It’s been pummeled by the risk sell-off sparked by the spread of the coronavirus, as well as a downgrade to junk by Moody’s Investors Service last week.
On the currency market, the rand continued to slump against the dollar and failed to get a reprieve even as the greenback wobbled due to the weaker jobs data
The rand has been the worst performing EM currency over the past year.
Stocks in Europe and the USA traded mostly in the green as momentum picked up for stocks primarily on the back of a report that Donald Trump would announce oil production cuts which could help boost oil prices
With most countries under lockdown, the trend of job losses could extend across all the major global economic centers
The financials index rebounded strongly following weakness in the prior session which was induced by the weaker rand and the downgrade of South Africa’s sovereign rating
Stocks in the US managed to open firmer despite the announcement by Donald Trump that the opening of the US economy could be delayed up until the end of April.
New York crude briefly dipped below $20 a barrel.
Asian markets fell Monday following a steep drop on Wall Street as the jubilation from last week's enormous US stimulus package faded and investors returned their attention to the soaring infection and death rate of the coronavirus.
But not everyone sees the bottom as necessarily in, with a Goldman Sachs Group analyst saying the market may turn lower in coming weeks.
The rand has been the worst performing emerging market currency over the past week.
Asian markets mostly rose Thursday as investors breathed a sigh of relief that US senators have finally passed a gargantuan stimulus package for the world's top economy after being delayed by wrangling over details.
The rise was linear for all the major indices particularly for US equity benchmarks which whipsawed between gains and losses.
Founder & Managing Director of Bourse Communications Rod North, Chairman and CIO of Bellwether Partners David Stevens and Founder of Appellon Sue Jauncey discuss the new realities investors face in this time of crisis.
With United States Congress inching closer to passing a stimulus bill which could aid the US economy, investors looked to take a bite at riskier assets.
While gaining ground against the greenback, the local currency fell against the pound and the euro.
Gold extended a surge toward $1 600 an ounce after the Federal Reserve took unprecedented measures to protect the US economy from the coronavirus shock.
United States markets did rebound following the announcement of an open-ended quantitative easing which will see the US Fed pump more stimulus into the economy.
European stock markets pushed higher Friday at the end of another volatile week as the ECB unleashed fresh stimulus to boost the economy as coronavirus grips the continent.
Oil rose further Friday after a dramatic rebound from multi-year lows but stayed below $30 a barrel on fears the deadly coronavirus will push the world into recession with an oversupply.