'MPC could lift SA lending rates tomorrow'

The rand is firmer this morning

The rand is firmer this morning. Analysts say the likelihood that the MPC will lift lending rates tomorrow supported the currency.

The key issue set to dominate local financial markets over the next two days is the Reserve Bank's monetary policy committee meeting where lending rates will come under scrutiny. Economists expect the central bank to lift the repo rate by 50 basis points. Other factors which will play a leading role today are forex movements, the performance of global markets and commodity prices.

On the capital market, the yield on the R153 government bond ended yesterday at 9.46%.

US and European markets
US stocks fell yesterday, after mortgage lender Washington Mutual said that it expects a large quarterly loss, raising concerns about results from the rest of the financial sector, while minutes from the Federal Reserve's latest meeting stoked fears of a recession. The Dow Jones industrial slipped 36 points to 12 576. The Nasdaq Composite retreated 16 points to 2 349, while the S & P 500 gave up seven points to 1 366.

Tech and financial stocks weighed on Europe's major markets. London's FTSE 100 shed 25 points to 5 990. In Paris the CAC 40 retreated 32 points to 4 913, while Frankfurt's DAX shaved off 49 points to 6 772.

Asian markets
Markets in the Asia-Pacific region are mixed this morning. In Tokyo the Nikkei slipped five points to 13 245. In Hong Kong, the Hang Seng gained 114 points to 24 426, while Sydney's ASX index fell 37 points to 5 540.

Platinum is trading at $2025 /oz and the spot price for Brent crude oil advanced to $105.62 a barrel.

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