Investors cautious ahead of budget speech

Investors may take a cautious view ahead of tomorrow's national Budget

Issues set to play a key role on local financial markets today include buoyant precious metal prices and firmer global markets. But investors may take a cautious view ahead of tomorrow's national Budget. Another factor which could come into play is the rand, while markets will also pay close attention to US markets opening after a long weekend.

The rand is firmer this morning. Forex dealers say the currency gained support in after hour’s trade on the back of firmer precious metal prices.

On the capital market, the yield on the R153 government bond ended yesterday at 9.25%.

US and European markets
Buoyant mining stocks and robust gains for British banks underpinned Europe's major markets yesterday. London's FTSE 100 shot up 159 points, or 2.8% to 5 947. In Paris the CAC 40 rose 90 points, or 1.9% to 4 862, while Frankfurt's DAX rallied 135 points, or 2% to 6 968. US markets were closed yesterday for President's Day.

Asian markets
Markets in Asia are in positive territory this morning. In Tokyo the Nikkei added 75 points to 13 711. In Hong Kong, the Hang Seng rose 427 points, or 1.8% to 24 186 while Sydney's ASX advanced 52 points to 5 610.

Platinum is trading at $2108.50 /oz and the spot price for Brent crude oil rose to $96.40 a barrel.

See the latest indicators at the bottom of the front page.