Sign in
Research link-chevron Created with Sketch.
link-chevron Created with Sketch. Products and Services link-chevron Created with Sketch.
link-chevron Created with Sketch. Products and Services
Economics link-chevron Created with Sketch.
Equities link-chevron Created with Sketch.
Help and Support
Help and Support
In the loop 18 May 2023

In the loop

Shireen Darmalingam

What you should know this morning:

  • The rand is weaker this morning, at R19.30/$, after closing weaker yesterday (R19.23/$*).
  • EM currencies were mixed yesterday; the CLP (+0.7%), RUB (+0.5%) and COP (+0.5%) were the biggest gainers; the THB (-0.9%), PLN (-0.8%) and ZAR (-0.8%) were the biggest losers.
  • Asian equity markets the Nikkei, Hang Seng and Shanghai Composite are up.
  • Both US President Joe Biden and House Speaker Kevin McCarthy have expressed confidence that a deal on raising the US debt ceiling will be reached this week.
  • Meanwhile, top officials are trying to highlight the danger to the economic and financial outlook of any failure to address the debt limit.
  • The US existing home sales data for April is due for release today. 
  • Sales are likely to have declined by 3.2% m/m in April, after having declined by 2.4% m/m in March.
  • This comes as the resale market continues to struggle due to lack of inventory and affordability challenges.
  • Existing homeowners who locked in cheaper mortgage rates are reluctant to list their homes.
  • The ECB will publish its Economic Bulletin today.
  • ECB Vice President Luis de Guindos commented yesterday that the central bank has completed most of its tightening but there's still "a way to go”. 
  • He added that future decisions will hinge on the data released in the coming months.
  • Japan’s trade deficit narrowed for a third consecutive month in April, to JPY432bn, from a revised JPY755bn in March.
  • Japan’s imports fell for the first time in more than two years in April as commodity prices softened.
  • Imports fell by 2.3% y/y in April, led by a decline in crude oil and liquid natural gas shipments.
  • The decline in imports reflects that the impact from the Russia-Ukraine war on energy costs has lessened over time, following its record price surge last year.
  • Exports were up 2.6% y/y in April, driven largely by car shipments during the month.
  • Export growth was the weakest in more than two years as China-bound shipments slumped amid concerns about faltering global economic demand.
  • Locally, there are no major economic data scheduled for release today.
  • Eskom: Stage 4 loadshedding is currently in place until 4pm; Stage 6 will be implemented then until 5am tomorrow.
  • Brent crude oil is down this morning, and down by 10.9% year-to-date.
  • The gold price is down this morning, and up by 8.5% year-to-date.
  • Brent crude oil is currently at $76.55/bbl; ($76.96/bbl*).
  • Gold is at $1978/oz ($1983/oz*).
  • SA CDS 329bps*, Brazil 224bps* and Turkey 679bps*.
  • Yields: US 10yr at 3.56%*, German bund at 2.33%* and SA 10-year generic at 11.84%*, SA’s R2030 at 11.00%*.

* Denotes yesterday’s close. 

 Key events and data: 

  • 10h00: Eurozone ECB publishes economic bulletin
  • 14h30: US initial jobless claims (13 May)
  • 16h00: US existing home sales (April), leading index (April)

Read PDF