By the close of trade on Monday, the South African rand weakened against the US dollar.

  • Worries about the rise in COVID-19 cases weighed on global markets, U.S. stock market indices plunged on Monday amid a resurgence in coronavirus cases, causing America’s ten richest people to shed billions of dollars from their fortunes. A surge in coronavirus cases both domestically and globally, weighed on market sentiment just eight days before the November presidential election.  With fall holidays such as Halloween and Thanksgiving approaching, the U.S. has now established its third peak of daily new cases with no signs of letting up. The United States saw a record surge in average daily coronavirus infections over the weekend, surpassing a previous record set in July, according to data from Johns Hopkins University.
  • In SA investors await the South African Finance Minister Tito Mboweni’s medium-term budget policy statement, due this week.
  • In the US, sales of new US single-family homes dropped in September, after four straight monthly increases. However, the US housing market remains supported by record low mortgage rates and demand for more space as the COVID-19 pandemic drags on.
  • The Chicago Fed national activity index fell in September.
  • Profits at China’s industrial firms rose for a fifth straight month in September, but at a slower pace as factory-gate deflation and rising raw materials costs undercut a recovery in the manufacturing sector. China’s economic rebound has been gaining momentum following the sharp COVID-19-driven downturn thanks to strong exports, pent-up demand and government stimulus, but slower-than-expected third quarter gross domestic product growth highlighted pockets of weakness for one of the few drivers of global demand. Profits at Chinese industrial firms in September rose 10.1% year-on-year to 646.43 billion yuan.
  • The yield on benchmark government bonds mostly fell yesterday. The yield on 2026 bond rose to 7.12%. Further, the yield on 2023 bond declined to 4.36%, while that for the longer-dated 2030 issue dipped to 9.26%.

In early trade on Tuesday, the US dollar is trading lower against the South African rand at R16.1722, while the euro is trading lower at R19.1162.  The British pound has declined against the South African rand to trade at R21.1023.

By the close of trade on Monday, the euro declined against most of the major currencies.

  • German business morale fell for the first time in six months in October, weighed down by concerns about rising coronavirus infection rates that are making them more cautious about the coming months.
  • Spain and Italy have imposed tighter restrictions on activity, in an effort to contain a surge in new cases.
  • Meanwhile, the Bundesbank’s monthly report showed that the German economy is likely still growing, albeit more slowly and that the country’s property market is holding up well despite the latest resurgence of the coronavirus pandemic.

In early trade on Tuesday, the euro advanced against the US dollar to trade at $1.1846, while it has marginally gained against the British pound to trade at GBP0.9062.