LOCKDOWN LEVEL 4 Ver 2
TOTAL DAYS 461 – 7 HOURS 40 MINUTES
Vaccine rollout day 145
New cases 13 347
By the close of trade on Tuesday 28th June 2021 the Rand weakened against the Dollar. Here at home the Constitutional court ruled that Jacob Zuma was in contempt of Court and was sentenced to an effective 15 months incarceration. Zuma has 5 days to surrender himself to either Johannesburg Central police station or Nkandla police station. Failure to do so, the Apex Court has instructed the Minister of Police as well as the police Commissioner to remove Mr. Zuma in person.
- The South African rand weakened against the US dollar. In the US, consumer confidence rose to its highest level in nearly 1.5 years in June, amid growth in the domestic labour market and a reopening US economy. Further, US house prices surged in April, on account of a shortage in single family houses. The survey from the Conference Board on Tuesday also showed a healthy appetite for long-lasting manufactured goods such as motor vehicles and household appliances, suggesting strong momentum in the economy as the second quarter ended. Consumers were also keen to purchase homes, a sign that house prices will continue to rapidly increase as supply lags.
- Japan’s factory output slid in May, dropping for the first time in three months, as the economic damage from renewed virus restrictions at home outweighed the momentum from rebounding exports. Industrial production fell 5.9% from April, the trade ministry reported Wednesday. Economists had expected a 2.1% drop.
- As the S&P 500 notches record highs despite the backdrop of potential monetary tightening and the new delta Covid-19 variant, veteran investor David Roche says investors should be wary of the bubble bursting. The flagship U.S. stock index on Friday chalked up its strongest week since February, despite the rapid spread of the highly contagious new variant and lingering concerns over whether the U.S. Federal Reserve will be forced to scale back its unprecedented stimulus program sooner than planned, with inflation running well above target.
- China’s factory activity expanded at a slightly slower pace in June, as high raw material costs and port disruptions in the export province of Guangdong affected business activity. The official manufacturing Purchasing Manager’s Index (PMI) eased to 50.9 in June from 51 in May, data from the National Bureau of Statistics (NBS) showed on Wednesday, remaining above the 50-point mark that separates growth from contraction. Analysts had expected it to slip to 50.8. The world’s second-largest economy has largely recovered from disruptions caused by the pandemic.
- A divided U.S. Supreme Court refused to lift the federal moratorium on evictions during the Covid-19 outbreak, leaving the ban in place until the end of July. Voting 5-4, the justices rejected calls by landlords and real-estate trade associations from Alabama and Georgia to block the moratorium while their challenge goes forward. They contend the Centers for Disease Control and Prevention exceeded its authority by imposing the ban as a means of stopping the spread of the coronavirus. Chief Justice John Roberts and Justice Brett Kavanaugh joined the court’s three liberals in the majority.
- The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 7.42%. Further, the yield on 2023 bond increased to 5.21%, while that for the longer-dated 2030 issue remained steady at 8.94%.
In early trade on Wednesday, the US dollar is trading lower against the South African rand at R14.3286, while the euro is trading lower at R17.0536. The British pound has declined against the South African rand to trade at R19.8527.
By the close of trade on Tuesday, the euro strengthened against most of the major currencies.
- UK house prices rose in May, as buyers rushed to take advantage of the tax incentive and sought bigger homes after their experiences of COVID-19 lockdown.
- Meanwhile, the German consumer price index (CPI) increased at a slower pace in June.
- Sweden may be playing for a chance to advance in the Euro 2020, however the futbol team can’t help the current situation on the political pitch. Sweden’s prime minister Stefan Lofven has resigned after losing a no-confidence vote in parliament. Talks will begin shortly to try and form a new government. If a new government can’t be formed after 4 attempts, snap elections will be held. Lofven felt this was the best decision for the country, as he felt a majority of the country did not want snap elections, especially with the possibility of an increase in coronavirus cases moving into the fall.
In early trade on Wednesday, the euro marginally advanced against the US dollar to trade at $1.1926, while it has weakened against the British pound to trade at GBP0.8627.