By the close of trade on Tuesday, the South African rand had strengthened against the US dollar.

  • China Foreign Ministry Reiterates Threat To Retaliate Against US Senate Bill On Hong Kong.  Resolutely Opposes The Action.  The statement reads “US Should Stop Interfering In Hong Kong And China’s Affairs,
    US Should Stop The Latest Bills On Hong Kong From Becoming Law.  China must take necessary measures to safeguard Its Sovereignty, Security”.   Focus is now on whether China will derail the trade talks.   This is a developing story!
  • In South Africa, state owned power utility firm, Eskom’s 2021-dollar bonds climbed the most in nine months, following the appointment of Nampak Chief Executive Officer (CEO), Andre de Ruyter as the new CEO.
  • In the US, homebuilding rebounded and permits for future home construction jumped to a 12-year high in October, pointing towards a strength in the housing market.
  • The New York Federal Reserve (Fed) President, John Williams, stated that the interest rates are at appropriate levels, but the economy is facing headwinds from slower global growth, uncertainty from trade policies and muted inflation pressures.
  • The yield on benchmark government bonds fell yesterday. The yield on 2020 bond declined to 6.86% while that for the longer-dated 2026 issue fell to 8.36%

In early trade on Wednesday the US dollar is trading 0.1% higher against the South African rand at R14.7847, while the euro is trading 0.1% higher at R16.3722.  The British pound has marginally gained against the South African rand to trade at R19.0862.

By the market close on Tuesday, the euro advanced against most of the major currencies.

  • In the eurozone, seasonally adjusted construction output rose for the first time in three months in September.
  • The seasonally adjusted Italian industrial sales and orders advanced on a monthly basis in September.

In early trade on Wednesday, the euro has marginally slipped against the US dollar to trade at $1.1074, while it has gained 0.1% against the British pound to trade at GBP0.8578.

The trading range for the day is a wide 14.6375 – 14.8950.