5 things you need to know before trading opens today
·25 May 2016
Here’s what is happening in the markets:
- Eskom CEO Brian Molefe has told EWN that he has never been approached for the position of finance minister. This follows weeks of rumour and speculation that Molefe would be asked to succeed Pravin Gordhan in the role, after he was forced from the role in a political conspiracy. Molefe’s comments are the latest denial that there is any movement to get rid of Gordhan in his role as finance minister.
- The South African Weather Service has given notice that the harsh El Nino, which has caused a massive drought in the country, is decaying. The service said that, while there is still uncertainty around the climate conditions over the next five months, the country should experience “above normal” rainfall over the western and north-eastern parts of the country for the winter season.
- South Africa’s rand firmed on Tuesday, buoyed by positive sentiment towards emerging markets assets, while Ascendis Health led stocks higher after announcing European acquisitions. On Wednesday the rand was trading at R15.62 to the dollar, R22.76 to the pound and R17.40 to the euro.
- In global news, Asian shares jumped on Wednesday, taking cues from sharp gains in European and US markets, while the dollar firmed as upbeat US home sales supported the view that the economy may be strong enough for the Federal Reserve to raise interest rates in coming months.
- Oil futures pushed closer to $50 a barrel on Wednesday, with US crude hitting its highest in over seven months after industry data suggested a larger-than-expected drawdown in US crude inventories last week. US crude climbed 56 cents to $49.18 a barrel, while Brent crude rose 47 cents to $49.08 a barrel.
In other news: It cost taxpayers R600 million to keep 561 soldiers on special disciplinary leave over the past 7 years. The soldiers were put on leave after they stormed the Union Buildings in 2009 to protest poor wages.
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