The Reserve Bank has warned that this year's growth will remain under pressure while higher administered price and elevated wage settlements could keep inflation on its toes.

According to the bank's latest inflation projection, inflation outlook is starting to deteriorate. But, the bank expects its inflation outlook for next year to remain the same with Consumer Price Inflation set to resume its downward curve below 6%. The rand is weaker this morning on the back of a stronger dollar and diminished risk appetite.

Bonds ended weaker yesterday with the yield on the R157 government bond at 8.25%.

US and European markets

US stocks rose yesterday as investors returned to financial and technology shares on bets the recent rally could have more room to grow after a brief pullback. The Dow Jones industrial average added 46.43 points to 8 331. The S & P 500 gained just over 9 points to 893. The Nasdaq Composite climbed 25 points to 1 689.

The London FTSE 100 was 31 points stronger at 4 362. In Paris the CAC 40 was up, to 3 156. Frankfurt's DAX was also higher at 4 738.

Asian markets

In Tokyo, the Nikkei is 155 points higher at 9 250, with a 6% gain in Sony Corp stock among the biggest boosts to the index. Hong Kong's Hang Seng index is up 337 points at 16 879. Sydney's ASX has gained 60 points to 3 783.

Platinum is trading at $1 127/oz and the spot price of Brent crude oil is $57.57 cents a barrel.