5 things you need to know before trading opens today
·8 Apr 2016
Here’s what is happening in the markets:
- President Jacob Zuma was booed at Sammy Marks Square in Pretoria as he left a debate of the National House of Traditional Leaderson Thursday, taunted by groups of young people and commuters. The president made controversial comments at the address, saying that he disagreed with how courts dealt with “African problems” – suggesting that the rule of law shouldn’t be the only avenue to address traditional issues in the country, as it becomes “too complicated”.
- The 2016 Municipal Election in South Africa has a date: 3 August. However, the Independent Electoral Commission could put the entire process at risk, threatening to remove as many as 16 million South Africans from the voter’s roll if they cannot verify addresses. The IEC is waiting for the Constitutional Court to rule on an appeal relating to the the registration and validation of over 4,000 voters’ addresses, which has led to all by-elections being postponed.
- The rand retreated on Thursday, reversing earlier gains as worries over government’s ability to grow the economy dampened risk sentiment and sent investors to safer havens. Ratings agency Standard & Poor’s also warned that the country’s political storm was clouding its prospects of growth – with a junk status looming. On Friday the rand was at R15.13 to the dollar, R21.31 to the pound and R17.21 to the euro.
- In global news, Asian shares extended losses to three-week lows on Friday, while the yen soared to a 17-month high against the dollar as investors bet Japan would be hard pressed to drive down its currency in the face of widespread foreign opposition. US stocks dropped on Thursday as oil prices slid and worries about the global economy resurfaced.
- Oil prices edged up early on Friday, lifted by firm economic indicators from the United States and Germany which could support fuel demand, but analysts warned that crude markets were threatened by another downturn because of ongoing oversupply. US crude futures were trading at $37.64 per barrel, up 38 US cents, while Brent futures were up 24 US cents to $39.67 a barrel.
In other news: Research group Ratings Afrika has found that nearly two thirds of South African municipalities are in financial trouble – and that service deliver across these areas is unlikely to improve any time soon.
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