Here is what’s happening in the markets:
- President Jacob Zuma put the economy squarely at the forefront of his State of the Nation Address on Thursday, which analysts say was a bit of a hit or miss. The speech ticked many of the boxes that the investor community said needed urgent attention, but economists and opposition politicians said it did not address the key concerns of rating agencies.
- South Africa’s rand slipped 0.3 percent after President Jacob Zuma delivered his state of the nation address. The investor community kept a close eye on the address, which did not rock the market one way or another – deferring much of key market questions to Pravin Gordhan’s budget speech at the end of the month. The rand is trading at R15.89 to the dollar, R22.98 to the pound and R17.98 to the euro.
- Some good news for the motoring sector: German motor company, Daimler, will expand its presence in South Africa, having made the decision to root its global truck and bus strategy in the country. This is expected to bring more business into the country, particularly for Mercedes-Benz, while also potential expanding assembly plant operation in East London.
- In global markets, Asian shares continued their slide as concerns over the European banking sector refused to subside. European banks further threatened a global economic outlook already under strain from falling oil prices and slowdown in China and other emerging markets. US markets were dragged by bank shares, but slightly boosted by the energy market.
- Global oil prices jumped almost 5% on Friday after hopes of a coordinated production cut came out of the UAE – however, analysts warn that this may be unlikely, and an oversupply of crude oil will persist. Brent Crude jumped $1.37 to $31.43. US crude oil climbed $1.21 to $27.42.
source: business tech