Daily Market Report 4 Sep
Demand for safe-haven assets rose; Japanese yen top performer
Following yesterday’s broad equities market sell-off, demand for safe-haven assets rose, making the Japanese Yen one of the top performers among G10 currencies as global economic concerns rise yet again. This demand was further reinforced by hawkish statements from Bank of Japan Governor Kazuo Ueda, who hinted at further rate hikes if the economy met forecasts. The Nikkei, which closed over 4% softer this morning, followed the sell-off in the US markets, where the likes of the Nasdaq closed 3% softer. The Rand opened this morning below the R18.00 handle and could test above this level, with risk sentiment not doing any risky assets favours at the moment.
Gold prices remain in a tug-of-war
Global demand concerns continue to weigh down oil prices, with Brent crude softer by another 0.5% thus far and trading nearly $10.00 per barrel lower than a week ago. Gold prices remain in a tug-of-war, with the improved Dollar and global uncertainty weighing up against one another. Focus this week remains on the dollar-denominated data, with the start of labour data out this week being the Job openings figures out later this afternoon.
Why Choose TreasuryONE?
Minimise the impact of market volatility on your bottom line by getting access to an experienced team of dealers that provides expert market advice – validated by facts and figures, not feelings or hearsay.
We customise risk management strategies to achieve the most competitive rates in a fast-moving and complex marketplace.
We provide effective and measurable processes for managing:
- Exchange Rate Risk arises when an organisation conducts business in multiple currencies, either through exports and imports, or through foreign operations.
- Commodity Price Risk is the financial risk posed to an entity’s financial performance and profitability by fluctuations in commodity prices that are primarily driven by external market forces and are therefore beyond the entity’s control.
- Interest Rate Risk management for companies involves identifying, measuring, and managing the potential impact of changes in interest rates on a company’s financial position and profitability.