LOCKDOWN LEVEL 3  [Adjusted ver. 3] 

TOTAL DAYS 526 – 07 HOURS 30 MINUTES 

Vaccine rollout day 208
New cases  4118
New Deaths 198
Recovery Rate 92,1%

In early trade on Tuesday 7th September 2021 the Rand had strengthened against the US Dollar.  The rand is currently trading at R14.2326, while the euro is trading marginally higher at R16.9096.  The British pound has gained against the South African rand to trade at R19.7192.  In early trade on Tuesday, the euro has advanced against the US dollar to trade at $1.1889, while it has marginally weakened against the British pound to trade at GBP0.8572.

For the past 125 years, Americans have celebrated Labor Day on the first Monday in September marking the unofficial end of summer. Students will reluctantly return to school, and stores have Labor Day sales unloading grills, appliances, electronics, and more. Many families travel to their favorite weekend getaway destinations to have one last cookout before the weather gets cold.  The dollar finished last week on a soft note but steadied at the start of the week, edging higher against nearly all major currencies. The Australian and New Zealand dollars were the weakest, off about 0.3%. The Norwegian krone managed to be the most resilient, virtually flat. Norway’s central bank meets on September 23 and is expected to be the first of the high-income countries to raise rates. The euro-Swiss franc cross has been adjusting higher, and the cross now sits at its best level in two months.

Back in SA the news that Zuma had been medically paroled had all opposition parties in a huff.  In other news the local Government elections will take place later this year with the ruling party engineering a reprieve to resubmit lists in regions they had previously missed the deadline on.

  • China’s Trade Balance for August, in Yuan terms, came in at CNY376.3 billion versus CNY495.51 billion expected and CNY362.67 billion last. The exports surged 15.7% last month vs. 22.5% expected and 8.1% previous. Imports rose by 23.1% vs. 9.1% expected and 16.1% prior. In USD terms, China reported a bigger-than-expected growth in the trade surplus, as both imports and exports bettered expectations Trade Balance came in at +58.34B versus +51.05B expected and +56.59B previous. Exports (YoY): +25.6% vs. +17.1% exp. and +19.3% prior.
  • Despite a rather rosy Monday for market sentiment, the risk-sensitive New Zealand Dollar and Australian Dollar were some of the worst-performing G10 currencies. In Asia, the Nikkei 225 and Hang Seng closed 1.83% and 1.01% higher respectively. Meanwhile, in Europe the DAX 30 and FTSE 100 climbed 0.96% and 0.68% respectively. US bourses were offline for the Labor Day holiday. Excluding the Norwegian Krone, the US Dollar outperformed its G10 counterparts. This might have been due to rising longer-term Treasury yields.
  • While the labor picture in America has greatly improved since the American Rescue Plan was passed in March, over seven million people will lose unemployment benefits today after the expiration of federal programs meant to bolster the economy during the pandemic (and which disincentivized millions from seeking work while inflation seeped into just about every facet of life).
  • The ECB is due to make its monetary policy decision on September 9th at 11:45 GMT. This will be followed by an ECB press conference at 12:30 GMT. What to expect? Surging inflation across the Eurozone as the economy reopens from lockdown has raised the possibility of the ECB starting to rein in its accommodative policy. Inflation rises at fastest pace in a decade CPI surged to 3% in August, up from 2.2% in July. Core CPI also jumped to 1.5%, up from 0.7%. This was the fastest rise in consumer prices in over a decade and well above the ECB’s target of 2%.
  • The Kingdom of Spain, using its full name, announced the launch of a 20-year green bond this week. The deal comes hot on the heels of Italy launching its first green bond in March this year (with a 24-year maturity), while France added a second green bond to its curve a couple of weeks later (with a 23-year maturity), and Germany brought its third green bond selling in May with a 30-year maturity.
  • U.K. retail sales growth lost momentum in August, with both shops and consumers pointing to concerns over higher prices. The value of goods sold in shops and online grew 3% in August from a year earlier, the British Retail Consortium and KPMG said, less than the 3.9% recorded the same month in 2020. Despite higher demand for clothing, especially as people returned to the office and social events such as weddings.