The rand advanced ahead of the mining production release, while benefiting later during the session from a softening greenback according to NKC Research.
On the global front, we have now revised our forecast for global GDP growth in 2020 this month upwards by about 0.5 ppts to -4.5 percent, largely on the back of evidence of a faster near-term growth rebound as lockdown restrictions are relaxed. Activity as measured by Google mobility data has generally continued to recover, but the pace of improvement in the G20 as a whole has slowed. We have become more pessimistic about growth prospects further out: we think the average quarterly global GDP growth rate in 2021 will be roughly double that recorded in 2019. While this may sound optimistic, the speed of the recovery is similar to that seen in the aftermath of the Global Financial Crisis. At the close of local trade, the rand quoted 0.33 percent stronger at R16.80/$, after trading in range of R16.73/$ – R16.89/$.
South African bourse
The JSE All Share (-1.17 percent) ended lower yesterday, dragged by losses in large technology (-3.13 percent) and banking (-2.60 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.11 percent) fell.
Brent crude oil
The Brent oil price vaulted higher in late trade as Opec predicted that oil demand will rise by a record seven million bpd in 2021 as economies move past the impact from the coronavirus. At the close of local trade, benchmark Brent crude futures quoted 2.38 percent higher at $42.97pb. Crude prices remained on the front during Asian trading.