South Africa Stock News - Rand Recovered

Rand slightly firmer, stocks to backtrack

South African Stock Exchange

The rand recovered from three week lows on Monday, aided by improved risk sentiment after China cut rates for the fifth time in 2015 to ease pressure on its slowing economy.

The Top-40 futures index was down 0.44%, suggesting the blue-chip stocks index would open 207 points softer at 09:00.

At 09:00, the rand inched 0.1% firmer to R13.6265/$, after touching its weakest since October 6 on Friday as upbeat manufacturing data from the United States put bets of a rate hike there back on the table.

Yields on government bonds ticked up in early trade, with the benchmark paper due in 2026 adding 1 basis point to 8.4%.

On Friday, the People's Bank of China cut interest rates and lowered the amount of cash banks must hold as reserves, triggering a rally in emerging market currencies.

Traders expect the relief on the currency to come under pressure heading into the US Federal Reserve's monetary policy decision on Wednesday.

Locally, South Africa's statistics agency releases Q3 unemployment figures on Tuesday followed by producer inflation and trade data later in the week.