Pumping…

The striking strengthening of the rand resulted in international resource group Anglo American (-1.43%), and world’s number four gold miner Gold Fields (-1.47%), travelling near the bottom of the bourse (-0.03%) at close yesterday. Mittal Steel (+2.97%) s

According to Stefan van Rooyen at the Efficient Group, the Barclays bid for Absa is still a powerful determinant in the current level of the currency. The rand gained 11 cents and 14 cents against the dollar and pound respectively.

Government bonds firmed in line with the currency. A softer dollar encouraged investors to go for its alternative, gold (+0.44%). A sharp rise in oil prices (+1.90%), despite higher than expected oil inventories in the US, made international consumers gasp in anticipation for its next unexpected move.

On the US equity markets the Dow Jones (+1.49%) was the biggest winner on the back of the gain posted by General Motors (+18.00%). The London based FTSE 100 (+0.44%) looked positive ahead of the general election today.

The Asian equity markets are currently mixed, the Hang Seng (+0.88%) surging and breaching the 14 000 points level. We expect the public holidays in Europe, combined with the election in the UK to result in a quiet day today.