5 important things you need to know before trading opens today
·28 Apr 2016
Here’s what is happening in the markets:
- Former Barclays CEO Bob Diamond has confirmed that he is looking to acquire Barclays Africa (Absa). Diamond’s group, Atlas Capital has formed a consortium with two other investment groups to acquire Barclays’ full 62% stake in the company. Diamond could face competition from the local Public Investment Corporation and other interested parties.
- Only a few hundred people turned up for protests across the country calling for President Jacob Zuma to step down. The #ZumaMustFall march was scheduled to take place on Freedom Day, and called for a million South Africans to rise up against the president and demand his resignation. However, South Africans chose to celebrate the public holiday doing something else.
- South Africa’s markets were closed on Wednesday due to the public holiday. The rand closed stronger on Tuesday and remained fairly stable throughout Freedom Day, before weakening in the evening. On Thursday morning ahead of the JSE opening, the rand was trading at R14.48 to the dollar, R21.07 to the pound and R16.41 to the euro.
- In global news, Asian stocks edged higher on Thursday as the US Federal Reserve appeared to be in no hurry to raise interest rates, while oil consolidated gains after hitting a 2016 peak. Meanwhile, US economic growth likely stalled in the first quarter as domestic demand cooled and a strong dollar continued to undercut exports, but a pick-up in activity is anticipated.
- Crude oil futures pulled back from 2016 highs early on Thursday as traders locked in profits after April’s sharp rally, but analysts said falling US production and strong investor appetite could push prices higher. Brent crude finished up at $47.18 a barrel, having hit a 2016 high of $47.45 earlier. US crude settled at $45.33 a barrel, after hitting a 2016 high at $45.62.
In other news: Finance minister Pravin Gordhan is reportedly unhappy about being named among three ministers who have been tasked to investigate why South Africa’s banks shut down the accounts of Gupta-owned businesses. The minister was not present at the meeting that decided on the probe.
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