T-72hrs to LOCKDOWN
Wow, South Africa’s President Ramaphosa showed courage under fire and led calmly from the front. Our thoughts and prayers go out to all South Africans and those people around the globe, as we face an invisible and deadly enemy. Our thoughts and prayers go out to The SAPS and SANDF as well as those first responders and health care workers that will battle to keep the SA Republic safe.
By the close of trade on Monday, the South African rand weakened against the US dollar.
- Unprecedented stimulus by governments and central banks across the globe showed little signs of calming investors spooked by the prospect of a prolonged recession.
- In the US, the Fed announced that it will now lend against student loans and credit card loans, as well as back the purchase of corporate bonds and direct loans to companies. The U.S. Federal Reserve on Monday rolled out an extraordinary array of programs to backstop an economy reeling from sweeping restrictions on people and businesses that scientists say are needed to limit the spread of the coronavirus.
- On the data front, the Chicago Fed national activity index rebounded in February.
- The St. Louis Fed President, James Bullard, stated that the US unemployment rate could hit 30.0% in the coming months, as the world continues to grapple with the coronavirus pandemic.
- Meanwhile, the US Democrats and Republicans failed to reach an agreement with respect to a $1.00tn-plus coronavirus stimulus package.
The yield on benchmark government bonds ended mixed yesterday. The yield on 2021 bond declined to 5.16% while that for the longer-dated 2030 issue rose to 12.35%.
In early trade on Tuesday, the US dollar is trading 0.7% lower against the South African rand at R17.7097, while the euro is trading marginally higher at R19.1315. The British pound has declined 0.1% against the South African rand to trade at R20.5775.
By the close of trade on Monday, the euro advanced against most of the major currencies.
- On the data front, a preliminary reading of the eurozone’s consumer confidence index hit a 5-year low in March.
- Separately, the German Bundesbank warned in its monthly report that a deep recession in Germany is now inevitable, given the coronavirus crisis but public finances are well positioned to cope.
In early trade on Tuesday, the euro has advanced 0.7% against the US dollar to trade at $1.0802, while it has marginally weakened against the British pound to trade at GBP0.9290.
Contracted Today 0
Dead Today 0
Dead 16,558 (4.34%)
Recovered 102,429 (26.83%)