5 things you need to know before trading starts today
·17 May 2016
Here’s what is happening in the markets:
- Finance minister Pravin Gordhan’s efforts to restore faith in the South African economy are being thwarted by the man who put him to the task: president Jacob Zuma. A report by Bloomberg details how Gordhan is being constantly undermined by the president as he (Zuma) jumps from one scandal to the next.
- Gauteng MEC for Economic Development Lebogang Maile has blamed the loss of 195,000 jobs in the province on a “weak economy”. The MEC told CNBC that the provincial government was putting together a plan to boost job creation, including an open tender process that will be open for public scrutiny.
- South Africa’s rand hit a two-month low against the dollar and government bonds weakened sharply on Monday after a newspaper report, denied by the government, that Finance Minister Pravin Gordhan faces arrest. On Tuesday the rand was trading at R15.61 to the dollar, R22.60 to the pound and R17.66 to the euro.
- In global news, Asian shares recovered from two-month lows on Tuesday after a rebound in technology giant Apple Corp and oil price gains boosted Wall Street. Wall Street rallied sharply on Monday, juiced by a jump in Apple shares and gains from energy stocks that were backed by stronger oil prices.
- Oil futures rose for a second straight session on Tuesday, with US crude hitting a six-month high, as the market focused on supply disruptions that prompted long-time bear Goldman Sachs to issue a bullish assessment on near-term prices. US futures were up 50 cents at $48.22 a barrel, and Brent crude futures were up 28 cents at $49.25 a barrel.
In other news: Two of the three ministers tasked with meeting SA banks over their decision to close accounts associated with the Gupta family have met with Standard Bank. The ministers – excluding finance minister Pravin Gordhan – failed to get any information about the decision.
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