5 things you need to know before trading opens today
·5 Apr 2016
Here’s what is happening in the markets:
- President Jacob Zuma has the full support of ANC leadership, as opposition parties move to have him impeached. The National Assembly will debate the motion on Tuesday, but political experts say that Zuma will weather the storm on pull through on top – at least for now. Analysts say the ANC cannot risk division this close to an election, and Zuma may see his fortunes turn after the Municipal Elections in August.
- Finance Minister Pravin Gordhan and Gauteng Premier David Makhura have slammed members among the ANC’s ranks that worked against the constitution by getting involved in greed and corruption. Gordhan said that greed linked to capitalism was leading to widespread corruption, with Makhura implying that the ANC as whole wasn’t “automatically” looking out for the best interests of the country.
- South Africa’s central bank will keep raising interest rates as necessary to keep inflation in check, the bank’s governor said at its monetary policy forum on Monday. The rand weakened against the dollar on Monday and remained vulnerable to domestic political uncertainty as President Jacob Zuma faced calls to resign after a court ruling last week that he failed to uphold the constitution. On Tuesday it was trading at R14.82 to the dollar, R21.12 to the pound and R16.87 to the euro.
- In global news, Asian shares and other riskier assets skidded on Tuesday, pressured by slumping crude oil prices and mixed messages from Federal Reserve policymakers on the outlook for US interest rate rises. US stocks ended weaker on Monday, pulling back from a recent rally that took them to new 2016 highs, as losses in commodity-related and industrial shares offset gains in healthcare.
- Oil prices fell on Tuesday on signs of weakening gasoline demand, long a pillar of support for struggling crude markets in both North America and Asia, and on concerns the global crude overhang will persist longer than expected. US crude futures were trading at $35.54 per barrel, down 16 US cents from their last settlement, while Brent futures were down 11 US cents at $37.58 a barrel.
In other news: An ongoing strike among waste removers in Johannesburg is heating up, as striking workers stone municipal workers trying to clean up the mess in the city streets. Meanwhile officials have warned of mounting health risks due to the waste, including a case of rats carrying the plague.
Loading ...