Demand for SA assets continues, Rand holding below 18.00
Investors continue to buy local government bonds and equities, with the JSE All Share index closing 1.21% higher and the 10-year bond yield now below the 10.0% mark.

The Rand managed to close below the 18.00 level last night and currently sits at 17.97 as the optimism over the GNU boosts confidence. Markets will now be watching President Ramaphosa’s cabinet appointments with interest, and given the rapid pace of the Rand’s strengthening over the past few days, we could see some consolidation in the short term. Considerable challenges still remain for the GNU to work successfully and only time will tell whether we are on a sustainable political path.

Markets flat this morning ahead of BOE MPC and US data later today
Markets are trading largely unchanged this morning ahead of the Bank of England’s interest rate decision later today, as well as the US jobless claims and Philadelphia Feds manufacturing index numbers.

The People’s Bank of China kept its Loan Prime rate unchanged at 3.45% this morning, while the BOE is widely expected to keep rates unchanged as well. The Dollar is currently trading at 1.0740 against the Euro, 1.2713 against the Pound, and 158.19 against the Yen.

Precious metals open firmer, Brent crude unchanged
Gold is up at $2,341 as it gains on the back of some safe-haven demand due to the rising geopolitical tensions in the Middle East. Tensions between Israel and Hezbollah have picked up significantly while Israel is continuing its offensive in Rafah.

Platinum and Palladium have also opened higher this morning, trading at $989 and $914 respectively. Brent crude is trading unchanged at $85.10 this morning with traders monitoring the unfolding geopolitical developments.