S.Africa's rand firmer as trade talk hopes rise, stocks edge up
* Rand rises on U.S-China trade progress
* Stocks tread water
JOHANNESBURG, June 26 (Reuters) - South Africa's rand firmed
on Wednesday as risk appetite improved after comments from the
U.S. Treasury Secretary suggesting progress in a trade deal with
China, offsetting disappointment about the size of potential
U.S. interest rate cuts.
Stocks rose marginally but were held back as bullion shares
came under pressure.
At 1510 GMT, the rand traded 0.57% firmer at
14.2750 per dollar. Lack of local economic data or political
news kept the currency in a narrow range.
"We are trading in the 10 cents range for the day. I think
everybody is sitting on their hands waiting for the G20 summit,"
said Andre Botha, a senior currency dealer at TreasuryONE.
Treasury Secretary Steven Mnuchin said on Wednesday that the
United States and China were close to a trade deal, CNBC
reported ahead of G20 meeting this week between presidents
Donald Trump and Xi Jinping.
The rand extended gains made on Tuesday even after members
of the Federal Reserve's policy committee tempered market bets
on aggressive U.S. rate cuts next month, with St. Louis Fed
President James Bullard saying a 50-basis-point reduction "would
The benchmark JSE Top-40 share Index rose 0.24% to
52,407.30, while the broader All-Share Index ticked up
0.13% to 58,421.72.
Curbing gains were bullion miners which fell 2.2%
on a lower spot gold price after the Fed signals.
Gold Fields fell 4.17% to 76.71 rand and
Sibanye-Stillwater closed down 2.14% at 16.49 rand.
Technology giant and bourse heavyweight company Naspers
rose 1.5% to 3,420.55 rand.
In fixed income, the yield on the benchmark government bond
due in 2026 dipped 3 basis points to 8.14%.
(Reporting by Olivia Kumwenda-Mtambo and Naledi Mashishi;
editing by John Stonestreet)
First Published: 2019-06-26 09:14:23
Updated 2019-06-26 18:08:42
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