Rand steadies overnight, Newsline

JOHANNESBURG – The South African currency started the week on the back foot as risk-off sentiment nocked the local unit from a six-month high reached against the greenback last week according to NKC Research.

The global equity market selloff gathered significant momentum during the European session, sparking a strong flight-to-safety bid and spilling over to the South African bourse. The risk-off mood followed ongoing concerns about coronavirus second-wave infections as UK and European cases rise and the US death toll approaches 200,000.

At the close of local trade, the rand quoted 3.52 percent weaker at R16.87/$, after trading in range of R16.25/$ – R16.94/$. The rand steadied overnight. Expected range today R16.50/$ – R17.00/$.

South African bourse

The JSE All Share (-2.48 percent) ended lower yesterday, dragged by losses across the board, as global equity markets sold off. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.64 percent) traded softer.

Brent crude oil

Brent oil fell yesterday on news that Libya’s National Oil Corporation lifted a force majeure on oil export terminals without a militant presence – a step towards resuming oil exports. The decision followed the announcement on Friday, September 18, by Field Marshal Khalifa Haftar, leader of the Libyan National Army, that he would lift the blockade on exports that he had imposed in January 2020. At the close of local trade, benchmark Brent crude futures quoted 3.54 percent lower at $41.43pb. Crude prices regained slightly during Asian trade this morning.

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