Brait economist Colen Garrow says the chances of another interest rate cut by the Reserve Bank are gradually fading. In response to the latest Reuters Econometer, Garrow pointed out that a number of domestic indicators were getting stronger. He added that the timing of a US rate hike could see local lending rates rising by the fourth quarter to keep the interest rate differential intact.

The rand is trading in a range this morning. On the capital market, the yield on the R157 government bond ended yesterday at 8.25%.

US and European markets

One year to the day after stocks fell to their worst close in more than 12 years, the US market spent most of Tuesday spinning its wheels. Major US averages ended slightly higher as falling commodity prices pressured materials stocks, offsetting gains in the telecom and industrial sectors. But, the weakest financial companies dominated market activity, as Citigroup and others ran up on strong volume amid speculation that regulators could consider clamping down on short sales of specific issues.

The Dow Jones added 12 points to 10 564. The Nasdaq Composite gained eight points to 2 341. The S & P 500 edged up two points to 1 140.

European markets ended mixed yesterday. London's FTSE 100 slipped four points to 5 602. In Paris, the CAC 40 added six points to 3 910. Frankfurt's DAX gained 10 points to 5 886.

Asian Markets

Markets in the Asia-Pacific region are mixed this morning. In Tokyo, the Nikkei slipped two points to 10 565. In Hong Kong, the Hang Seng added 49 points to 21 257. Sidney's ASX edged up one point to 4 821. Platinum is trading at $1603.75 an ounce and the spot price of Brent crude oil is trading at $79.3 a barrel.