Not good news for Floridians as Hurricane Milton regained its category 5 storm status yesterday, just a day before it slams into their east coast later today.? By way of comparison, Hurricane Ian which caused widespread damage in 2022 showed 1000 lightning strikes in its eyewall over a 14 hour period but Milton just recorded 58?000, it truly is a once in a century monster!!!
These are the mid rates at 5:50 today:
Brent Crude = $77.36 per barrel
- The Rand continued to slide yesterday with most of our pain coming from China, although geopolitical concerns and a resilient Dollar are not helping.? We opened the day at R17.45 to the Dollar and fell to R17.60 by the close.?
- Just over a week ago the Rand was sitting at R17.03 to the Dollar with a significant portion of those gains being attributed to encouraging stimulus headlines out of China.? After an extended period in the doldrums Chinese officials finally announced a string of measures aimed at promoting economic growth so as to hit their 2024 GDP target of 5%, measures that dramatically improved sentiment towards commodity linked currencies like the Rand.? But then came their annual Golden Week national holiday from the 1st to the 7th of October where all stimulus headlines stopped, and when things got back underway yesterday the market could not hide its disappointment.?
- Maybe the market got a little greedy after being treated to day after day of new Chinese stimulus headlines before their break but the reaction to yesterday’s update was somewhat overblown.? Beijing issued a statement saying government is “fully confident” of achieving its 2024 growth target but failed to announce any new stimulus measures, and this lack of further detail sent luxury and commodity stocks tumbling while also weighing on the Rand.? Hong Kong’s Hang Seng Index cratered by 9.4% which is its biggest daily drop since 2008, an interesting fall just because the market didn’t get more stimulus news on the very first day after the Chinese holiday.?
- The following is from Business Day:? The Rand weakened the most in almost three months on Tuesday while the JSE tracked weaker global markets after?Chinese officials’ lack of clarity on a stimulus package left investors wary. “China’s economic growth prospects remain uncertain, despite officials’ assurances of meeting annual targets,” said?Stephen Innes, a partner at?SPI Asset Management. “Markets had anticipated more substantial stimulus measures to revitalise the economy, but Beijing’s underwhelming response has sparked disappointment.”
- US monetary policy speculation is also counting against the Rand as the market continues to price in a 25bps cut in November with a small chance of no cut at all, a Dollar positive scenario.? The FED’s primary focus is now on labour market metrics but tomorrow’s CPI report could move the dial if US inflation falls further than expected which will take even more pressure off the FED to cut in November.? But before that we get the latest FED minutes today and those will be scoured for any clues around the potential pace of future rate cuts.?
- No local market data today.?
- Possible USD mid rate trading ranges in the Rand today are R17.45 and R17.75.
GLOBAL INVESTMENT OFFERING!!!
Foundation Fund Managers gives you the opportunity to invest in international shares which gives you direct access to owning the likes of Google, Mastercard, Amazon, Apple, Nvidia, Adobe, Ferrari, VISA, Microsoft or any other company listed on the London Stock Exchange, NASDAQ or NYSE.
We also offer local share portfolios with a bespoke selection of stocks listed on the JSE.? ?
For more information please contact Connar Taylor on:
