LOCKDOWN LEVEL 1

TOTAL DAYS 624 – 07 HOURS 35 MINUTES 

Vaccine rollout day 275
New cases  22 391
New Deaths  22
Recovery Rate 92,8%
Vaccines Administered 26,917,603

By the close of trade on Thursday 09th December 2021, the South African rand weakened against the US dollar.

  • In South Africa, manufacturing production reported its sharpest decline in October, more than that in July amid the civil unrest, following labour constraints and load-shedding hitting the industry.
  • In the US, the initial jobless claims dropped to the lowest level in more than 52 years for the week ended 3 December, with tighter labour market conditions amid an acute labour shortage.   There are two key bits of fresh data that could influence the dollar on Friday. The one that is most likely to get all the attention is the release of the inflation numbers for November. And the consensus among analysts is that the results will not be very helpful for the Fed or the Biden Administration. That said, the outcome could add to the obstacles in getting the Build Back Better spending bill through Congress. Of course, by now the Fed has acknowledged that inflation isn’t transitory, and has taken on a decidedly hawkish tone.
  • The US economy has rebounded remarkably well from the initial collapse in activity brought about by the pandemic. The economy is now around 1.4 percentage points larger than before it started and while there are still 3.9mn fewer jobs, the rebound in employment is also impressive. Yet despite all of the economic damage, today’s flow of funds data from the Federal Reserve shows that household wealth has surged by $29.4tn since the end of 2019 and is in fact up $35.5tn since the low point in 1Q 2020.  President Joe Biden’s administration remains “quite confident” that the fastest inflation in decades will be short-lived and abate once pandemic-fueled supply-chain and labor-market disruptions ease, according to one of his top economic officials. The rising cost of living is a problem affecting Americans in their daily lives, particularly around the holidays as they pay higher prices for Thanksgiving turkeys and Christmas trees, and Biden understands the impact, Commerce Secretary Gina Raimondo said in an interview Thursday.
  • If the Federal Reserve meets expectations next week and announces a more aggressive unwind of the measures taken to boost the economy, it will mark an important policy shift for the U.S. central bank and Chairman Jerome Powell. Again. The Powell Fed, in fact, has become almost as known for its abrupt changes in direction as it has for the unprecedented levels of stimulus it has provided during the pandemic.
  • China’s central bank is trying to restrain the rise of the yuan after the currency hit a 2 1/2-year high against the dollar. Commercial banks were ordered Thursday to increase the amount of their foreign currency deposits that are held as reserves for the second time this year. That reduces the amount available for trading, making it easier for Beijing to manage the exchange rate. The People’s Bank of China is trying to make the yuan’s state-set exchange rate more flexible and market-oriented but has intervened over the past year to restrain its rise.
  • The yield on benchmark government bonds were mixed yesterday. The yield on 2026 bond stood at 7.83%. Further, the yield on 2023 bond declined to 4.96% while that for the longer-dated 2030 issue rose to 9.45%.

In early trade on Friday 10th December 2021, the US dollar is trading higher against the South African rand at R15.9926, while the euro is trading higher at R18.0664.  The British pound has gained against the South African rand to trade at R21.1548.

By the close of trade on Thursday 9th December 2021, the euro declined against most of the major currencies.

  • In Germany, trade surplus rose with exports and imports rising more than expected in October.
  • Asian stock markets are trading mostly lower on Friday, following the broadly negative cues overnight from Wall Street, as traders cashed in on the recent strength in the markets and on news of Chinese property developer Evergrande defaulted on US dollar bonds. Traders are also concerned after several countries across the world announced stricter restrictions on movements to curb the spread of the Omicron variant of the coronavirus. Asian markets ended mixed on Thursday. Traders are now looking ahead to U.S. inflation data and next week’s U.S. Federal Reserve’s monetary policy announcement for cues on the economy.
  • Australian shares are down on Friday, as healthcare and tech stocks drag on the market and Omicron restrictions temper investor optimism overseas. At 1:15pm AEDT, the benchmark ASX 200 was down 0.5 per cent to 7,349, while the broader All Ordinaries had also fallen 0.5 per cent to 7,652. Healthcare, energy and tech stocks were among the biggest drags on the market.
  • Japan’s wholesale prices spiked 9.0per cent in November from a year earlier, data showed on Friday, in a sign supply bottlenecks and rising raw material costs continue to squeeze corporate profits. The rising cost pressures, coupled with a weak yen that inflates the price of imported goods, adds to pain for the world’s third-largest economy as it emerges from the consumer slump caused by the pandemic. The year-on-year rise in the corporate goods price index (CGPI), which measures the prices companies charge each other for their goods and services, was higher than a median market forecast for an 8.5per cent gain.

In early trade on Friday 10th December 2021, the euro marginally advanced against the US dollar to trade at $1.1326, while it has marginally weakened against the British pound to trade at GBP0.8560.