Morning report (27.5)

Local equities rallied even further yesterday buoyed by the positive GDP data and the good CPI also pitching in. Equities gained 1.5%, with financials (1.9) and resources (1.9) making the largest gains.

Nico Kelder, economist at the Efficient Group says that the rand continued to pound the dollar but lost to the euro and sterling.

Yields on the bond market traded lower on the back of the better than expected CPI data. Gold and platinum closed unchanged yesterday with oil falling almost 1%.

European markets traded higher with the CAC (France) leading the way with a jump of 1.4%. US markets were flat with only the Nasdaq making significant gains.

In the Far East the Nikkei (Japan) is trading flat so far this morning while the Hang Seng (Hong Kong) is making up for the gains it missed yesterday.

We expect that local market should have another positive day. The bond market will once again have to wait until later to see if the PPI data is different from expectations.