On Tuesday, the South African rand weakened against the US dollar.
- In the US, producer price index (PPI) unexpectedly fell on a monthly basis in September, weighed down by decrease in the cost of goods and services.
- The National Federation of Independent Business optimism index dropped in September.
- The Federal Reserve (Fed) Chairman, Jerome Powell, stated that the central bank will act as appropriate amid an economy that is likely to continue to expand, indicating towards further interest rate cut. He also announced that the bank will expand its balance sheet to ensure smoother functioning of US short-term funding markets.
- Chicago Fed President, Charles Evans, indicated that the central bank might cut interest rates again in a bid to tackle potential headwinds and boost inflation.
- On the trade front, news reports suggested that the US will limit capital flows into China, with a particular focus on investments made by US government pension funds and would impose visa bans on Chinese officials involved in the mass detention of Muslims in the Chinese region of Xinjiang.
- The yield on benchmark government bonds rose yesterday. The yield on 2020 bond advanced to 6.91% while that for the longer-dated 2026 issue rose to 8.27%.
In early trade on Wednesday, the US dollar is trading 0.1% lower against the South African rand at R15.2628, while the euro is trading 0.1% lower at R16.7335. The British pound has declined 0.1% against the South African rand to trade at R18.6438.
By the close of trade on Tuesday, the euro advanced against most of the major currencies.
- In Germany, seasonally adjusted industrial production unexpectedly rose on monthly basis in August, driven by production of intermediate and capital goods.
- French trade deficit widened in August.
- Meanwhile, in the UK, Bank of England Governor, Mark Carney, stated that the physical impact of climate change will not be evenly distributed, adding that the bank will be the first regulator to stress test its financial system against various climate pathways.
In early trade on Wednesday, the euro has advanced 0.1% against the US dollar to trade at $1.0963, while it has gained 0.1% against the British pound to trade at GBP0.8975.
Springbok scrumhalf Cobus Reinach dazzled when he scored the fastest hat-trick in Rugby World Cup history on Tuesday. Reinach crossed for his hat-trick in the 20th minute – beating Australia fullback Chris Latham’s hat-trick after 25 minutes in a 142-0 thrashing of Namibia in Adelaide during the 2003 World Cup. Reinach’s hat-trick was the earliest (in terms of time elapsed) in a World Cup match but the 10 minutes and 25 seconds between his first and third scores is second to Wallaby Adam Ashley-Cooper’s hat-trick in nine minutes and 16 seconds against the USA in 2011.
The Boks started like a house on fire, already bagging a try-scoring bonus-point as early as the 17th minute! The biggest disappointment was however the second half where the Boks managed just 17 – 9 points with a red card in their favor.
Remarkably, the Boks have won 47 of 47 lineouts so far at the 2019 Rugby World Cup, the only side yet to misplace a lineout throw at the event.
This bodes well with the playoffs lying in wait! Next stop a Quarter Final against (possibly Japan) This potential meeting could not have been better scripted after our shock loss to Japan at the last world cup.