What are we waking up to
Conflicting rhetoric from Trump, markets mainly tread water
Donald Trump addressed supporters at a rally to mark his 100 days in office last night, saying that China will have to accept his tariffs and that he was looking at fresh tariffs on India. He once again criticized Fed Chair Jerome Powell, saying he was not doing a good job and calling for rates to be cut. The impact of tariffs was evident in the Chinese manufacturing PMI number today, with factory activity contracting sharply. The DXY index is currently quoted slightly higher, with the Euro and Pound largely unchanged at 1.1375 and 1.3392, respectively. Yesterday's JOLTs job openings number missed estimates, and markets will be watching today's ADP nonfarm employment change data. We also have the provisional US Q1 GDP and core PCE price index numbers to look forward to today.
Market uncertainty and a lack of fresh drivers keeping the Rand unchanged
The Rand is trading flat at R18.54 this morning as a lack of fresh drivers along with the budget and political uncertainty keeps traders on the sidelines. Technically, we need a sustained break of the R18.50 level to open the way for a move back to the R18.25 area. Local government bond yields continue to rally in the wake of the better-than-expected inflation data last week and on the back of offshore buying.
Gold marginally weaker but still holding above $3,300
The Gold price fell to a $3,316 close last night down 0.75% on the day on the back of some profit-taking amidst a lack of new developments on the tariff front. Oil is headed for its biggest monthly loss in 3 years as demand uncertainty due the the global trade tensions along with oversupply weigh on the price. Brent crude is currently quoted at $63.49 after having opened at $65.79 yesterday.
Brought to you by TreasuryONE