Some weakening

(22.7.04) Local equity markets closed higher, gaining more than 2% yesterday on the back of a currency that weakened against the dollar to close above R6.

Nico Kelder, economist at the Efficient Group reports that the currency weakened against all the majors, as the dollar regained some ground.

Yields on the capital market closed slightly weaker while commodities where mixed – platinum down 0.6% and gold lower by 0.53% and oil pushed higher by 0.15%.

European markets closed higher with the DAX making the largest gains jumping 1.04%. US markets closed lower ignoring good results from General Motors and Microsoft.

The latter announced plans to buy its own stock, double its dividend and issue a $3 special dividend, while it distributing $75bn over the next 4 years.

The Far East is lower by 1.52% (Japan) and 0.6% (Hong Kong) this morning. After a healthy local rally yesterday, profit taking may limit upside today.