Markets WRAP: Rand closes at R14.8068/$
Here's what the end of Wednesday brought:
US 10 Year 2.12%
S&P 500 -0.04%
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Global stocks slip as rally pauses
Adam Haigh and Todd White, Bloomberg
Stocks slipped globally on Wednesday alongside US index futures amid signs the June revival in risk appetite may have overshot with trade concerns still lingering. Treasuries gained along with gold and the yen.
The Stoxx Europe 600 index opened lower for the first time in four sessions, after shares slipped across Asian markets.
Hong Kong led losses as demonstrators forced road closures in the city, while stocks dipped less in Shanghai, Tokyo and Seoul.
US President Donald Trump said he’s personally holding up a trade deal with China and won’t complete the agreement unless Beijing returns to terms negotiated earlier in the year. The dollar drifted and oil declined.
Just as investor concern over protectionism and global growth seemed to ease, Trump’s latest salvos at China and the Federal Reserve introduced fresh uncertainty.
With the president scowling at the central bank’s “way too high” interest rates in a tweet on Tuesday, traders will next focus on European Central Bank President Mario Draghi’s comments in Frankfurt and later on US consumer-price data for clues on the institutions’ policy paths.
“With no assurance that China will meet with the US on the sidelines of the G-20 later this month, trade tensions continue to fuel market uncertainty,” said Nema Ramkhelawan-Bhana, an economist at FirstRand Bank in Johannesburg. “Yet, the growing probability of Fed cuts is counterbalancing trade concerns.”