LOCKDOWN LEVEL 1

TOTAL DAYS 564 – 07 HOURS 35 MINUTES 

Vaccine rollout day 213
New cases  648
New Deaths 25
Recovery Rate 95,8%
Vaccines Administered 19,041,535

By the close of trade on Friday 8th October 2021, the South African rand strengthened against the US dollar.

  • In the US, the jobs market showed its slowest pace of recovery in September, dragged down by the existing Delta coronavirus variant and a consistent domestic shortage of labour force, following a decline in hirings at schools.
  • Goldman Sachs Group Inc. economists cut their forecasts for U.S. growth this year and next, blaming a delayed recovery in consumer spending. Goldman’s team, led by Jan Hatzius, said in a report on Sunday that they now expect growth of 5.6% on an annual basis in 2021 versus their previous estimate of 5.7%, and 4% next year, down from 4.4%. The declines were mostly offset by upgrades to their projections for the following two years.
  • Labour force participation dropped slightly in September. Meanwhile, average hourly earnings rose in September and the country’s unemployment rate declined more than expected in the same month.
  • U.S. crude futures are steady after topping $80 a barrel for the first time since November 2014. The global energy crisis is boosting demand at a time when OPEC+ producers are keeping supplies tight.
  • The yield on benchmark government bonds rose on Friday. The yield on 2026 bond stood at 7.82%. Further, the yield on 2023 bond advanced to 5.38%, while that for the longer-dated 2030 issue rose to 9.51%.

In early trade on Monday 11th October 2021, the US dollar is trading higher against the South African rand at R14.9926, while the euro is trading higher at R17.3537.  The British pound has gained against the South African rand to trade at R20.3558.

By the close of trade on Friday, the euro advanced against most of the major currencies.

  • Two Bank of England officials moved to reinforce signals of an imminent rise in U.K. interest rates to curb inflation, with one telling households to brace for a “significantly earlier” increase than previously thought. Michael Saunders, one of the most hawkish members of the Monetary Policy Committee, suggested in remarks published Saturday that investors were right to bring forward bets on rate hikes. Hours earlier, Governor Andrew Bailey warned of a potentially “very damaging” period of inflation unless policy makers take action.
  • In Germany, trade surplus tightened amid consistent supply chain bottlenecks, while the country’s current account surplus narrowed in August.
  • China’s power cuts, if short-lived, will have limited effect on GDP and rated companies,” Moody’s Investors Service said in its latest assessment of the Chinese economy on Monday. Additional takeaways China’s power cuts and the resulting disruptions to production across industrial sectors are credit negative. China’s electricity cuts will add to economic stresses, weighing on GDP growth for 2022. Costs of the cuts will be borne unevenly across sectors. Expect China’s power cuts and resulting production disruptions to be temporary.

In early trade on Monday 11th October 2021, the euro has marginally advanced against the US dollar to trade at $1.1586, while it has weakened against the British pound to trade at GBP0.8488.