5 things you need to know before trading starts today
·13 May 2016
Here’s what is happening in the markets:
- Recession fears have sparked once again as data from South Africa’s mining sector spells out bad news for the economy. Data out from Stats SA showed that the country’s manufacturing sector declined by 2% in the last quarter, while mining plunged by 18% – the worst drop on record – reflecting the continued global slowdown in commodities.
- Government has downplayed news that South Africa has slipped to being the third biggest economy on the African continent, saying that Egypt’s rise to second place represents opportunities for South Africa. Trade minister Rob Davies said that with much bigger populations, it is no surprise that Nigeria and Egypt would have bigger economies than South Africa.
- South Africa’s rand weakened against the dollar on Thursday and stocks fell as domestic growth concerns rattled sentiment towards the continent’s most industrialised economy. On Friday the rand was trading at R15.08 to the dollar, R21.75 to the pound and R17.13 to the euro.
- In global news, Asian shares fell on Friday after a rocky performance on Wall Street, while the yen nursed losses as traders wagered the Bank of Japan will add to its massive stimulus before too long.US stocks ended mixed on Thursday, with gains in telecommunications and consumer staples helping make up for a tumble in Apple to a two-year low.
- Oil prices dipped in early trading on Friday as a stronger dollar weighed and Russia warned that a global crude supply overhang could last into next year. Brent crude futures were trading at $47.13 per barrel, down 47 cents, while US crude futures were down 38 cents at $45.85.
In other news: Gauteng Premier David Makhura has reportedly warned Johannesburg residents that that if they burn down buildings, they will not get new ones. This follows violent demonstrations in Vanderbijlpark and Limpopo, where schools and clinics were burnt to the ground.
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