Banking

5 things you need to know before trading opens today

Staff Writer

 ·17 Mar 2016

Here’s what is happening in the markets:

• President Jacob Zuma will take the hot seat in Parliament on Thursday in a question and answer session with MPs amid explosive revelations that the Gupta family had been trying to influence Cabinet appointments. Zuma is expected in the National Assembly Chamber at 14:00. Deputy finance minister Mcebisi Jonas revealed on Wednesday that the Gupta family had offered him the position of Finance Minister – with conditions attached.

• Moments before Jonas’ revelation, the deputy minister reportedly received a text message telling to “leave martyrdom to Christ”, which is believed to have been a threat for him to keep quiet about his meeting with the Guptas. Following Jonas’ revelations, there has been public outcry, as well as backlash from other politicians.

• South Africa’s rand gained strongly late on Wednesday following Jonas’ revelations, though a dovish statement form the United States central bank that suggested it would not raise interest rates anytime soon was also factored in. The rand is currently trading at R15.71 to the US dollar, R22.37 to the pound and R17.63 to the euro.

• In global news, Asian shares gained across the board on Thursday and the dollar was on the defensive after suffering substantial losses as risk appetite revived after the U.S. Federal Reserve reduced the number of interest rate hikes expected this year. On Wall Street, the S&P 500 closed at its highest level of the year.

• Oil futures extended strong gains on Thursday, continuing to gather support after the world’s biggest suppliers firmed up plans to meet to discuss an output freeze. U.S. crude settled at $38.46 a barrel on Wednesday, with Brent crude rising to $40.33 a barrel.

In other news: Sports minister Fikile Mbalula is expected to brief the media on Thursday on FIFA’s allegations of match-fixing and the suspension of SA Football Association officials. Previously, Mbalula vehemently denied any wrongdoing on South Africa’s part when it came to light that $10 million was paid in bribes to secure the 2010 FIFA World Cup.