Local investors are jittery ahead of Finance Minister Pravin Gordhan's maiden medium-term budget policy speech today. Concerns that the country's deficit as a percentage of the Gross Domestic Product may balloon have fuelled negative sentiment towards the rand and the capital market. 

Other factors to play a role include weaker global markets, the stronger US dollar and retreating commodity prices. 

On the capital market, the yield on the R157 government bond ended yesterday at 8.71%. 

US and European Markets 

US stocks yesterday fell for a second straight session as investors ditched home builders and financials on fears lawmakers may let a federal home buyer tax credit expire, while commodity shares succumbed to pressure from the higher dollar. Stocks initially started on a firmer footing, but the bounce quickly faded as the dollar rebounded and investors fretted about the financial sector's prospects. 

The Dow Jones lost 104 points or 1.1% to 9 868. The Nasdaq Composite retreated 13 points to 2 142. The S&P 500 fell 13 points or 1.2% to 1 067. 

Europe's markets ended weaker. London's FTSE 100 dropped 51 points or 1% to 5 192. In Paris, the CAC tumbled 64 points or 1.7% to 3 744. Frankfurt's DAX shed 98 points or 1.7% to 5 642. 

Asian Markets 

Markets in the Asia-Pacific region are weaker at this hour. In Tokyo, the Nikkei lost 144 points or 1.4% to 10 219. In Hong Kong Kong, the Hang Seng tumbled 354 points or 1.6% to 22 236. Sydney's ASX dropped 59 points or 1.2% to 4 771. 

Platinum is trading at $1 339/oz and the spot price of Brent crude oil is weaker at $76.42 a barrel.