Rise in precious metal prices supports rand

The rand is firmer this morning. Forex dealers say that the uptick in precious metal prices supported the currency.

Resurgent precious metal prices and the firmer rand are among the factors set to dominate local financial markets today. Analysts say investors will also keep a close eye on developments relating to a possible takeover bid of MTN by Indian company Bharti Airtel.

On the capital market, the yield on the R153 government bond ended yesterday at 10.29%.

US and European markets
US stocks rose yesterday as Fannie Mae's reassuring comments about the credit and housing markets buoyed financial shares, while record crude oil prices lifted shares of energy companies. Speculation that Microsoft could resume takeover talks with Yahoo fed a rebound in technology shares. The Dow Jones gained 51 points to 130 21. The Nasdaq Composite advanced 19 points to 2 483, while the S & P 500 climbed 11 points to 1 418.

Financial stocks weighed on Europe's major markets yesterday. London's FTSE 100 ended unchanged at 6 215 mainly due to support from resources shares. But in Paris the CAC 40 gave up 22 points to 5 041, while Frankfurt's DAX retreated 35 points to 7 017.

Asian markets
Markets in the Asia-Pacific region are mixed this morning. In Tokyo the Nikkei added 15 points to 14 064. In Hong Kong, the Hang Seng fell 437 points, or 1.7% to 25 825, while Sydney's ASX shed 23 points to 5 679.

Platinum is trading at 1947/oz and the spot price for Brent crude shot up to $119.45 a barrel.

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