A rally

Local markets rallied higher on Friday after continued dollar strength or rand weakness, depending on your point of view.

Nico Kelder, economist at the Efficient Group reports that the All Share gained 1.35% with resources the main driver, up by 2%. South African bond yields followed the currency and closed 0.7% weaker.

Commodities traded mixed with oil gaining 0.77%, gold falling 1.10% and platinum nearly 2% higher, trading at $864.50. European markets closed in the black with the FTSE gaining 0.81%, DAX 0.49% higher and the CAC closing 0.53% higher.

US markets also closed higher on Friday. Markets were also supported by US GDP releases being in line with expectations. This, in some weird way, encouraged traders to go long on dollars.

The Eastern markets are currently trading mixed; the Nikkei -0.4% and the Hang Seng 0.4%. We expect local and world markets to continue to trade higher today.

Locally the currency should help the markets as well as important economic data due this week.