Business

5 things you need to know before trading opens today

Staff Writer

 ·31 Mar 2016

Here’s what is happening in the markets:

• Finance minister Pravin Gordhan has responded to questions posed to him by the Hawks investigative unit. In the minister’s response, he maintains that the so-called spy unit in SARS was lawful, and didn’t break any laws that he was aware of in its operation. The minister also bit back at the unit, saying that the manner in which they posed the questions to him and threatened him was unlawful.

• The Financial Services Board (FSB) has granted a full exchange service licence to a JSE competitor – for the first time in over a century. ZAR X will become the first company in 100 years to offer exchange services outside of the JSE in the country. The licence paves the way for the group’s launch in September.

• The rand stretched a rally to a three and a half month high late on Wednesday, breaking back through R15 to the dollar for the first time in 2016. This, while government bonds also shone after Federal Reserve chair Janet Yellen’s dovish comments sparked an emerging markets comeback. On Thursday the rand was trading at R14.94 to the dollar, R21.39 to the pound and R16.91 to the euro.

• In global markets, Asian shares edged up to a four-month high on Thursday, taking cues from Wall Street gains overnight, as receding worries of near-term US interest rate hikes continued to buoy risk sentiment. US stocks plowed further into positive territory for 2016, helped along by Yellen’s comments.

• Oil futures fell in Asian trade on Thursday, with US crude hitting the lowest level in more than two weeks, amid renewed worries of global oversupply after US crude inventories rose to a record high. Brent crude to $38.81 a barrel, while US crude to $37.79 a barrel. In local energy news, new proof has emerged showing that South Africa had planned a binding nuclear agreement with Russia.

In other news: The Constitutional Court is expected to deliver a judgement on the case brought against president Jacob Zuma by the DA and the EFF over the Nkandla saga and the powers of the public protector. The judgement is expected at 10h00 on Thursday.