South African rand regains some ground after US pauses tariffs
At 0631 GMT, the rand traded at 19.25 against the U.S. dollar , about 0.4% stronger than its previous close.
The local currency hit a record low of 19.9325 on Wednesday, the day Trump's country-specific import tariffs kicked in.
Trump said he would temporarily lower tariffs imposed on dozens of countries including South Africa but kept a 10% blanket duty on almost all U.S. imports.
In addition to Trump's tariffs, local politics have also weighed on the risk-sensitive rand, after a contentious budget vote last week threatened the future of the ruling coalition.
The second-biggest party in the coalition, the pro-business Democratic Alliance, voted against key legislation in the budget and challenged the budget process in court.
South Africa-focused investors on Thursday will look out for February domestic manufacturing (ZAMAN=ECI), opens new tab data due at 1100 GMT for clues on the health of the economy.
Benchmark 2030 government bonds were stronger in early deals, with the yield down 15.5 basis points at 9.15%.
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Reuters
22 minutes ago
- Reuters
Wall Street steady, European shares rise as investors digest Ukraine peace efforts
LONDON/TOKYO, Aug 19 (Reuters) - Wall Street opened flat, European stocks rose and oil edged down on Tuesday as traders assessed the implications of the previous day's talks at the White House on the war in Ukraine, and looked ahead to a key meeting of central bankers. U.S. President Donald Trump told President Volodymyr Zelenskiy on Monday that the United States would help guarantee Ukraine's security in any deal to end Russia's war there, though the extent of any assistance was not immediately clear. Trump said on Tuesday he hoped Russia's Vladimir Putin would move forward on ending the war in Ukraine but conceded the Kremlin leader may not want to make a deal. Uncertainty about what it all might mean kept investors cautious, and Wall Street opened mixed with the S&P 500 (.SPX), opens new tab flat in early trading, the tech-heavy Nasdaq Composite down 0.44% (.IXIC), opens new tab and the Dow Jones Industrial Average (.DJI), opens new tab up 0.4%. Europe's broad STOXX600 index rose 0.5%, (.STOXX), opens new tab outperforming Asian stocks, (..MIAPJ0000PUS), opens new tab which fell slightly. Europe's gains were capped by declines in defence names, (.SXPARO), opens new tab off 3%, however, as traders saw the talks as a change to take profit in the sector after a strong run. If there were to be a breakthrough in talks, "I think European stocks are likely the biggest winners, and within that framework, I think industrial companies, construction for rebuilding materials, and financial companies," said Michael Arone, chief investment strategist at State Street Investment Management. Losers could be shares in energy and defence after their recent gains, he said. Energy markets were also assessing the chance of an end of the war in Ukraine, and oil prices fell on speculation that progress in the talks could lead to the lifting of sanctions on Russian crude, lifting supply. The moves were not dramatic though, and some analysts said developments were unlikely to jolt oil and gas markets significantly. Brent crude futures were down 57 cents at 66.06 a barrel, with U.S. crude down 77 cents at $62.65. The other main event for markets this week is the Federal Reserve's August 21-23 Jackson Hole symposium, where Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. His remarks will be closely watched as the Fed grapples with sticky inflation and signs of slowing growth. Futures markets imply at least two 25 basis point rate cuts this year, reflecting a view that the Fed will not view inflation as a long term problem. In addition, Trump has been pressuring the Fed to cut rates dramatically, and has publicly speculated about replacing Powell before his term ends next year. "The question is to what degree is the Fed happy to ignore the inflation data because they think it is distorted by tariffs," said Ian Samson, portfolio manager at Fidelity International. "If you look out one year, you're not going to have Powell as Fed chair, there are a couple of governors to replace, so the balance is clearly going towards people who are willing to look through tariffs, and thus continue to lower interest rates." Such a scenario would likely bode well for equities, help shorter dated government bonds, and weigh on the dollar, though the impact for longer dated bonds is less clear, said Samson, adding that he was largely avoiding the long end of the U.S. yield curve. Longer dated yields around the world have been rising in recent months. German and British 30-year yields have tested multi-decade highs, and the latter rose sharply late on Monday. Bond markets were calmer on Tuesday. U.S., German and British government bond yields were all lower across their respective curves, with the benchmark 10 year Treasury yield down 3 basis points at 4.31%. In currency markets, the dollar was a touch softer against most other currencies, with the euro up 0.1% at $1.1672. Gold was a fraction firmer at $3,335 an ounce.
Rhyl Journal
22 minutes ago
- Rhyl Journal
What is the coalition of the willing?
Here, the PA news agency looks at who is in the coalition and what they can achieve: – What is the coalition of the willing? At least 31 countries have signed up to help defend a peace deal in Ukraine, once one is struck, in an effort to ward off a future attack by Russia. The UK is among those 'willing', with the Government prepared to put 'boots on the ground and planes in the air', Sir Keir said when he unveiled plans for the coalition at London's Lancaster House in March. But it is not the first of its kind. Former US president Bill Clinton suggested in 1994 that sanctions could be imposed by a 'so-called coalition of the willing', to quell North Korea's nuclear ambitions, and his successor George W Bush announced a similar alliance in the early-2000s to disarm the then-Iraqi president Saddam Hussein. – Who has signed up? Leaders from the UK, France, Germany, Finland and Italy have all indicated their willingness to defend a peace deal in Ukraine. They joined Donald Trump, who has not signed up to the coalition, and his Ukrainian counterpart Volodymyr Zelensky in the White House this month. A total 31 countries are in the coalition, according to the Government's National Security Strategy 2025. Beyond Europe, it has attracted support from the Canadian and Australian prime ministers Mark Carney and Anthony Albanese. – Will British troops go to Ukraine? After Sir Keir's commitment to put 'boots on the ground and planes in the air together with others' to militarily defend a peace deal, No 10 unveiled its support for a Multinational Force Ukraine, in an effort to help regenerate Ukraine's own armed forces. Military chiefs have previously met in Paris to agree a strategy for the force, and to coordinate plans with the EU, Nato, the US and more than 200 planners from 30 international partners. And in Washington, European leaders discussed early-stage proposals for a security guarantee, similar to Nato's article five principle – that an attack one member is an attack on the entire bloc. – What has the coalition achieved? 'The coalition of the willing has been successful in advocating for Ukraine and communicating with Trump and the US administration during its outreach to Russia,' says Edward Arnold from the Royal United Services Institute (Rusi) think tank. 'Moreover, it has undertaken lengthy military planning and has established a leadership and command structure. However, much remains uncertain, especially the nature of any agreed ceasefire or whether a broader peace process is on the cards.' But the US's commitment is 'far from certain', he told the PA news agency, and warned that 'European planners cannot progress the planning until the US position is agreed'. – What is Nato's role? Nato's Mark Rutte has attended meetings of the coalition of the willing, and Mr Trump appeared pleased with his efforts at their meeting when he described the secretary general as 'a great, great political leader'. But Mr Arnold warned that an article five-style mutual defence deal could amount to 'de facto' membership of the bloc for Ukraine, something which Russian president Vladimir Putin 'is unlikely to agree to'. He said: ''Nato article five-style' guarantees are being talked about but Nato is a unique alliance which is not able to be replicated for Ukraine. 'Moreover, if any coalition of the willing member signed a mutual defence clause with Ukraine, and then Ukraine was attacked further, that could conceivably draw that Nato member into direct conflict with Russia, thereby potentially triggering article five.' Sir Keir has welcomed 'some sort of article five-style guarantees', which he said 'fits' with some of the coalition's work, and Mr Trump who met Mr Putin in an Alaska summit claimed Moscow will 'accept' multinational efforts to guarantee Ukraine's security.
The Independent
23 minutes ago
- The Independent
Trump wants to join Zelensky-Putin peace meeting
Russian President Vladimir Putin expressed a desire for a bilateral meeting with Ukrainian President Volodymyr Zelensky to discuss peace. Donald Trump, following a summit in Alaska and a White House meeting, asserted his wish to be involved in any peace talks between Putin and Zelensky. Despite Putin's initial preference for a one-on-one meeting, Trump pushed for a trilateral format, with his team now reportedly working on arrangements. German Chancellor Friedrich Merz indicated that Putin agreed to meet Zelensky within two weeks after a call with Trump, though a date is yet to be set. Both Zelensky and Russian Foreign Minister Sergei Lavrov have since expressed openness to a trilateral meeting, with Zelensky hailing recent progress as significant.
