By the close of trade on Monday, the South African rand strengthened against the US dollar.

  • The US CDC confirms 11 new cases of the CoronaVirus in the United States.
  • Investors erased $393 billion from China’s benchmark stock index on Monday, sold the yuan and dumped commodities as fears about the spreading coronavirus and its economic impact drove selling on the first day of trade in China since the Lunar New Year.
  • In South Africa, total new vehicle sales fell in January. However, BMW’s decision to publish sales figures every quarter, instead of monthly, made it difficult to offer a clear picture of the state of the SA market.
  • In the US, ISM manufacturing PMI unexpectedly rebounded in January after contracting for five straight months amid a surge in new orders. Markit manufacturing PMI also rose in January.
  • The yield on benchmark government bonds fell yesterday. The yield on 2021 bond declined to 6.51% while that for the longer-dated 2030 issue fell to 8.90%.

In early trade on Tuesday, the US dollar is trading 0.4% lower against the South African rand at R14.8269, while the euro is trading 0.4% lower at R16.3943.   The British pound has declined 0.3% against the South African rand to trade at R19.2746.

By the close of trade on Monday, the euro declined against most of the major currencies.

  • Activity in the eurozone manufacturing sector improved in January but remained in contraction territory, suggesting that the worst might be over for the bloc’s battered manufacturing industry.
  • German manufacturing sector contracted at the slowest pace in 11 months in January on slower falls in new orders and export sales.
  • The European Central Bank (ECB) Vice President, Luis de Guindos, cautioned against a hasty response to the coronavirus outbreak, even if the outbreak has already had a huge impact on global markets.
  • The Bundesbank President, Jens Weidmann, stated that the ECB should simplify its inflation target as part of a broad review of policy but avoid any sharp increase in its objective.

In early trade on Tuesday, the euro has marginally slipped against the US dollar to trade at $1.1058, while it has weakened 0.1% against the British pound to trade at GBP0.8506.

Load shedding has just struck mid-sentence so I guess that I should bid everyone a good bye.   Have a great day, it’s another belter out there along the east coast.