South African rand gains before manufacturing PMI, vehicle sales data
JOHANNESBURG: The South African rand gained some ground against a weaker dollar in early trade on Monday, ahead of a purchasing managers' index (PMI) survey for the domestic manufacturing sector and vehicle sales figures.
At 0602 GMT, the rand traded at 17.9475 against the dollar , about 0.2% firmer than Friday's closing level.
The Absa PMI for May is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa's most industrialised economy.
Local investors will then turn their focus to vehicle sales data due around 1200 GMT, giving a snapshot of consumer demand for big-ticket items.
Nedbank economists said they expect annual growth in new vehicle sales to have accelerated from 11.9% in April to 20.4% in May, reflecting last year's low base and easing financial conditions due to interest rate cuts.
South African rand falls back after strong gains
The dollar last traded about 0.2% weaker against a basket of currencies as U.S.-China trade tensions continued to simmer and investors turned defensive ahead of U.S. jobs data.
South Africa's benchmark 2035 government bond was little changed in early deals, with the yield up 0.5 basis points at 10.16%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Copper falls as China's factory activity misses expectations
LONDON: Copper prices fell on Tuesday as factory activity in top metals consumer China missed expectations, indicating that US tariffs were affecting the manufacturing superpower while trade tensions between Washington and Beijing drag on. Benchmark three-month copper on the London Metal Exchange lost 0.3% to $9,588 per metric ton in official open-outcry trading. The most active US Comex copper futures fell 1.5% to $4.786 a pound, reducing the premium against the LME benchmark to $940 a ton from Monday's $1,074. The Comex futures hit $4.9495, the highest since April 3, on Monday on concerns that US President Donald Trump's plan to double tariffs on steel and aluminium imports to 50% from Wednesday would mean that new US copper tariffs, subject to an ongoing investigation in Washington, were more likely. 'We are seeing a general decline following yesterday's run-up, with traders questioning the sustainability of these levels after another dose of weak China data overnight,' said Ole Hansen, head of commodity strategy at Saxo Bank. China's factory activity shrank for the first time in eight months - the Caixin/S&P Global manufacturing PMI fell to 48.3 in May, the lowest reading in 32 months, a private-sector survey showed. On Saturday, China's official PMI showed May factory activity fell for a second month. With the US manufacturing also contracting in May, for a third straight month, traders were waiting for a possible call between Trump and Chinese leader Xi Jinping. According to the White House, they were likely to speak this week. Providing support to the LME copper were the 21-day moving average, currently at $9,527, and continuing outflows from the stocks in the LME-registered warehouses. LME's daily data showed the inventory fell to 143,850 tons, the lowest in almost a year, after 4,600 were delivered out. The spread between the cash and the three-month copper contract was last at a premium of $49 a ton, indicating concerns about nearby supply in the LME system, partly related to Ivanhoe Mines' Kakula mine in the Democratic Republic of Congo. Among other LME metals, aluminium fell 0.8% to $2,447 a ton in official activity, zinc slipped 0.5% to $2,684, lead dipped 0.4% to $1,973, nickel shed 1.0% to $15,375, while tin rose 1.8% to $31,250.
Business Recorder
4 hours ago
- Business Recorder
Iron ore at nearly 2-month low
BEIJING: Iron ore futures slipped to their lowest in nearly two months on Tuesday, dragged down by demand fears sparked by US President Donald Trump's plan to double the tariffs on steel imports to 50% and weak factory data in top consumer China. The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) ended morning trade 0.92% lower at 697 yuan ($96.84) a metric ton. The contract hit its lowest since April 10 at 690.5 yuan a ton earlier in the session. The benchmark July iron ore on the Singapore Exchange eased 1.03% to $94.25 a ton as of 0334 GMT, after touching its lowest since April 10 at $93.8 earlier.
Business Recorder
4 hours ago
- Business Recorder
Oil prices climb on geopolitical tension concerns
NEW YORK: Oil prices climbed about 2% on Tuesday to a two-week high, as persistent geopolitical tensions between Russia and Ukraine and the US and Iran looked set to keep sanctions on both Russia and Iran in place for longer. Brent crude futures rose $1.11, or 1.7%, to $65.74 a barrel at 11:21 a.m. EDT (1521 GMT), while US West Texas Intermediate (WTI) crude rose $1.17, or 1.9%, to $63.69. That puts Brent on track for its highest close since May 14 and WTI on track for its highest close since May 13. 'Risk premia have filtered back into the oil price following deep Ukraine strikes on Russia over the weekend,' said analyst Harry Tchilinguirian of Onyx Capital Group. Russia said work on trying to reach a settlement to end the war in Ukraine was extraordinarily complex and that it would be wrong to expect any imminent decisions but that it was waiting for Ukrainian reaction to its proposals. Russia is a member of the OPEC+ group of countries and was the world's second biggest producer of crude in 2024 behind only the US, according to US energy data. OPEC+ includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia. 'More importantly for the barrel count, there is the to and fro between the US and Iran regarding uranium enrichment,' Onyx Capital's Tchilinguirian said. Iran was set to reject a US nuclear deal proposal that would be key to easing sanctions on the major oil producer. Iran was the third biggest producer of crude in OPEC behind Saudi Arabia and Iraq in 2024, according to US energy data. In Canada, wildfires burning in Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude output, according to Reuters calculations. In Europe, Euro zone inflation eased below the European Central Bank's (ECB) target last month on surprisingly benign services costs, underpinning expectations for further policy easing even as global trade tensions fuel longer-term price pressures. Central banks like the ECB use interest rates to keep inflation in check. Lower interest rates can spur economic growth and demand for oil by reducing consumer borrowing costs. The Organisation for Economic Co-operation and Development (OECD), however, revised down its forecast for global economic growth as the fallout from US President Donald Trump's trade war takes a bigger toll on the US economy. The Trump administration said it wants countries to provide their best offers on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in five weeks.
