The rand steadied from the dollar on Wednesday as investors awaited the federal government Reserve’s policy decision and US-China trade talks later inside the day.
Stocks slipped, with Shoprite, which runs?South?Africa’s biggest supermarket chain, pulling the bourse down.
At 1510 GMT the rand was trading at R13.62 per dollar, little changed from your close of R13.60 .
Markets expect Fed officials will reinforce their recent dovish stance given a stalemate on global trade, indications of a slowdown in the usa economy, and waning business and consumer confidence.
“It can be interesting to discover if the Fed’s assessment people growth has evolved, with typical recessionary indicators for example persistent stock losses and widening corporate credit spreads levelling off since December,” RMB analyst Nema Ramkhelawan-Bhana said in a note.
“But, fourth-quarter high-frequency data could have been sparse mainly because of the Federal shutdown, creating an additional air of uncertainty on the committee’s growth outlook. This, in addition to softer global data, should continue to justify the Fed’s cautious stance, that’s positive for risk assets.”
A dovish Fed and signs the world’s no. 1 economy is slowing, have spurred interest on emerging market assets this month and possesses seen the rand outperform its peers – bar the Russian rouble.
Investors focus has also been on Chinese Vice Premier Liu He’s stop by to Washington on Wednesday and Thursday for a round of trade negotiations with the Country.
In fixed income, the yield about the benchmark government paper due in 2026 dropped 2 basis suggest 8.74%.
On the bourse, Shoprite issued income warning after market close , prompting its shares to plunge by 14.2% on Wednesday and dragging over the stocks of fellow retailers Truworths, Woolworths as well as Foschini Group .
The retailers, alongside Spar Group, filled the bottom of the Johannesburg Stock Exchange’s Top 40 index .
A series of?South?African retailers have reported poor performance throughout the last couple of months, with the country’s consumers reining in spending in a very lagging economy.
The blue-chip index overall was down 0.Nearly to 47,972 points additionally, the broader all-share index have also been down by 0.47% to 54,131 points.?