Markets update: Rand firms as global equities advance

The rand was trading at about R16.66 to the US dollar early on Tuesday, after weakening slightly against the greenback on Monday. It was quoted at approximately R18.77 to the euro and R22.07 to the pound at the end of Monday’s session.

South African equities closed higher on Monday. The FTSE/JSE All Share Index gained 0.57% to 108,378 points, while the Top 40 rose 0.61%. The Financial 15 advanced 1.20%, the Resources 10 gained 0.37% and the Industrial 25 added 0.20%.

Overseas markets were firmer. On Wall Street, the Nasdaq Composite rose 1.1% to a record close, while the S&P 500 gained 0.7% and the Dow Jones Industrial Average added 0.2%. Technology stocks, including Nvidia and Microsoft, helped lift the major indices as investors assessed expectations for US interest rates and looked ahead to the quarterly earnings season.

Asian markets were mostly higher in early trading on Tuesday, following Wall Street’s gains. The Nikkei 225 was up about 0.4%, while the Kospi gained 0.2%. Hong Kong’s Hang Seng index was also higher.

Brent crude was trading near $100.35 a barrel, while West Texas Intermediate was around $89.25. Oil prices were little changed after falling on Monday as traders assessed higher exports from the Middle East and easing supply concerns.

Spot gold was steady at about $4,140 an ounce, with a stronger dollar and higher US Treasury yields offsetting support from reduced expectations of an imminent Federal Reserve rate increase.

The market focus on Tuesday is likely to remain on US monetary-policy signals, bond yields, commodity prices and the start of the corporate earnings season.