Recovering…

(17.8.04) Resources and gold shares were the main drivers gaining 4.15% and 4.63% respectively.

Nico Kelder, economist at the Efficient Group says the currency weakened against all the majors shedding 1.7%. Since the cut in interest rates the currency weakened 5.6%, perhaps the miners and exporters are content with this.

Yields on the capital market closed weaker while commodities where mixed – platinum up 2.67% and gold gaining 1.14% and oil closed lower by 0.51%. European markets closed in the black yesterday after some relief in world oil prices.

US markets surged higher by 1.3% as bargain-hunters emerged after months of weakness in some sectors. The Far East is higher by 0.31% (Japan) and 0.51% (Hong Kong) this morning.

After a healthy local rally the past weak, profit taking may limit upside today depending on the currency movements.