UPDATE 1-South African rand firmer as market awaits budget

Published: 2020-06-23 tag: industry, materials and utilities

(Updates prices)

JOHANNESBURG, June 23 (Reuters) - South Africa’s rand edged up on Tuesday as risk appetite improved after President Donald Trump offered reassurance that a U.S. trade deal with China was on track, quelling market concerns that Washington may be ditching the agreement.

At 1500 GMT, the rand was trading at 17.2200 per dollar, 0.72% firmer than its previous close.

White House trade adviser Peter Navarro said his comments that the trade deal with China was “over” were taken out of context. Trump chimed in, saying the Phase 1 trade deal struck with China in January was fully intact.

Locally, on the radar is Finance Minister Tito Mboweni’s emergency budget in response to the COVID-19 crisis due on Wednesday that is expected to show a markedly wider budget deficit.

“Given how the emergency budget has little fiscal space to manoeuvre, Mboweni is walking on the tightest of ropes,” Lukman Otunuga, senior research analyst at FXTM, said in a note.

“Whatever the outcome of the speech tomorrow, it will certainly have an impact on the South African rand which has slightly gained against the dollar today.”

Trump’s assurances boosted markets globally, including the Johannesburg Stock Exchange (JSE). The benchmark FTSE/JSE all share index closed up 2.48% to 55,574 points and the top 40 companies index gained 2.84% to end the day at 51,295 points. Gold continued to be a preferred safe haven investment due to a fear of a rebound in coronavirus cases with the JSE’s gold index up over 6%.

Bonds weakened, with the yield on the 2030 government issue up 6 basis points to 9.340%. (Reporting by Olivia Kumwenda-Mtambo; Editing by Susan Fenton)

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.