Rand strengthens as markets keep close eye on Steinhoff

Cape Town - With five days to go before African National Congress delegates gather to pick President Jacob Zuma's successor, the rand strengthened by 1.02% to trade at R13.58 to the dollar on Monday.

The market on Monday continued to carefully watch Steinhoff International Holdings [JSE:SNH] as the company recouped some of the losses from last week, gaining 55.83% on the day after it released two announcements detailing steps it had taken to bolster its internal governance.

The local market closed marginally down with the All-Share index in the red down 0.03%, while the Top40 managed to gain 0.08%.

Financials were the big losers, as they closed down by more than 1%, Industrials finished down by 0.40%, while resource stocks rallied by 1.27%.

Gold miners ended the day up 1.47%.

Meanwhile, most precious metals were trading weaker with the gold price down 2.21%, at $1 248 per ounce and platinum down 0.23% at $889.48 per ounce.

Brent crude erased early loses to trade at $63.88/bbl, but remained under pressure due to concerns around oversupply caused by increased US shale output.

Global stocks rallied off the back of the positive jobs numbers out of the US and a positive close to Asian markets. European and US markets edged higher as investors looked towards the monetary policy meetings from the FED, ECB and the BoE later this week.

Brexit

After Friday’s deal there was a renewed sense of optimism around the Brexit process in the UK, as Theresa May secured the endorsement of the European Commission. Talks will now progress to much-anticipated trade discussions should the European Council accept the endorsement.

However, as negotiations continue, May faces internal pressure from Boris Johnson and Michael Gove to pursue a “hard” Brexit, where after a transition period the UK will be able to divulge from the EU laws.

Monday was an important milestone for bitcoin’s shift from the peripheries of finance toward the mainstream.

READ: Bitcoin brings crypto to Wall Street

Bitcoin futures surged on debut, jumping more than 26% and triggering two temporary pauses in trading designed to calm the market. This year demand for Bitcoin has grow by around 1 600%.