By the close of trade on Monday, the South African rand had strengthened against the US dollar.
- In South Africa, the Absa PMI fell in November, suggesting that there is little chance of a recovery in manufacturing production in 4Q19.
- Total new vehicle sales fell during the period, on account of weak sales of light commercial vehicles.
- In the US, ISM manufacturing PMI contracted for the fourth consecutive month in November, as new orders slumped to their lowest level since 2012. Construction spending fell on a monthly basis in October.
- The U.S. government on Monday said it could slap additional duties of up to 100% on $2.4 billion in French imports of Champagne, handbags, cheese and other products, after concluding that a new French digital services tax would harm U.S. tech companies.
- The yield on benchmark government bonds rose yesterday. The yield on 2020 bond advanced to 6.88% while that for the longer-dated 2026 issue rose to 8.47%.
In early trade on Tuesday, the US dollar is trading marginally lower against the South African rand at R14.5379, while the euro is trading 0.1% lower at R16.1025. The British pound has marginally declined against the South African rand to trade at R18.8199.
By the close of trade on Monday, the euro advanced against most of the major currencies.
- German manufacturing PMI came in better-than-expected in November.
- The eurozone manufacturing activity rose slightly in November, signaling that the worst is over for euro area producers.
- The European Central Bank (ECB) President, Christine Lagarde, stated that the bank will be resolute in restoring eurozone price stability under her presidency, while stressing that an upcoming strategy review will be wide-ranging, including climate change as well as inflation.
In early trade on Tuesday, the euro has marginally slipped against the US dollar to trade at $1.1077, while it has marginally weakened against the British pound to trade at GBP0.8558.