Business

5 things you need to know before trading starts today

Staff Writer

 ·29 Apr 2016

Here’s what is happening in the markets:

• The Pretoria High Court will today decided whether 783 charges of corruption against President Jacob Zuma can be re-instated. The charges were withdrawn in April 2009 by the head of the National Prosecuting Authority at the time, because the so-called ‘spy tapes’ contained information implying the charges were brought through political interference. The DA has argued that the decision was irrational – and the spy tapes prove it.

• Rating agency Standard & Poor’s warns that rate hikes will lead to top-tier banks facing credit losses this year. S&P’s outlook on the banking sector is negative, while the agency holds the country’s sovereign debt at one notch above junk. The agency changed its outlook to negative at the end of last year, citing deceleration in growth, rising interest rates, and inflationary pressures on banks’ asset quality.

• South Africa’s rand resumed a recent rally on Thursday, racing to a one-week high as emerging currencies lapped up the return of risk appetite after a string of disappointing data releases from the United States. On Friday the rand was trading at R14.27 to the dollar, R20.87 to the pound and R16.24 to the euro.

• In global news, the yen surged to an 18-month peak on Friday as investors wagered the Bank of Japan might be done adding fresh stimulus to the economy, hurting prospects for Japanese exporters with a move that rippled through share markets across the Asian region. US stocks closed down on Thursday as the Bank of Japan’s shocking call to cap monetary stimulus continued to rattle investors.

• The Asia-Pacific crude market remained weak on Thursday as strong Brent prices, ample spot supply and anaemic demand from Chinese teapots weighed on June spot differentials. Brent crude futures were trading at $47.92 per barrel, down 22 US cents from their last close. US crude futures were down 18 US cents at 45.85 a barrel.

In other news: The Kruger National Park is getting a new luxury hotel, spurred on by demand created by a rising black middle class, SANParks said. The famous nature reserve is expected to see even more commercialisation in the coming years as demand has increased. However, the move is upsetting environmentalists, who say the development will disturb the animals – including endangered species.