Rand steady as US-China optimism offsets weak data

South?Africa’s rand held steady on Thursday, as disappointing economic data were offset by market optimism over US-China trade tensions.

At 1420 GMT, the rand traded at R13.89 in comparison to the US dollar, 0.2% weaker than its previous close.

A?South?African business confidence index fell recently, while manufacturing growth slowed to just one.6% in November, data showed on Thursday.

Those figures supported the view that boost?Africa’s most industrialised economy slowed while in the final ninety days of 2018 right after a particularly strong third quarter, if the economy exited recession.

Underpinning investor sentiment, China said on Thursday who’s had made progress on “structural issues” in talks on ending a multibillion-dollar trade dispute together with the Usa.

The rand has enjoyed a very good commence to 2019, gaining above 3% against the dollar, that is dragged lower by signs the fact that pace of US monetary tightening will slow.

But analysts warn the rand remains susceptible to global risk factors like Brexit, in addition to domestic issues including possible people’s credit reports downgrades and political uncertainty while in the lead up to this year’s national election.

On the bourse, the benchmark JSE Top 40 index was barely changed at 47,164 along with the broader All-share index inched up 0.09% to 53,271.

In fixed income, the benchmark 2026 government bond was marginally stronger on Thursday for the reason that yield fell 0.5 basis examine 8.775%.?

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