Markets are falling as risk averse sentiment grows 2019-10-09

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Markets are falling as risk averse sentiment grows 2019-10-09

Published Date: 2019-10-09 | Source: TreasuryONE | Author: TreasuryONE Dealing

The escalating trade war rhetoric and tit-for-tat actions between the US and China has cast doubts on there being any constructive outcome at the upcoming talks. Markets have fallen as risk averse sentiment grows. The Dollar is a touch firmer this morning and is at 1.0960 against the Euro and 1.2210 against the Pound. The Pound weakened sharply yesterday after news that Brexit talks between the UK and Europe were close to breaking down. EM currencies all fell yesterday, led by Turkey, as trade and geopolitical tensions unnerved traders. The Rand is at 15.2705 this morning, still within the recent 15.0000/15.4000 range. Jerome Powell, last night, said that the Fed would begin growing their balance sheet and providing liquidity to the funding market and he also left the door open for a further rate cut.

The risk off sentiment pushed Wall Street into the red with the S&P down 1.56%, the Dow down 1.19% and the Nasdaq down 1.67%. Asian stocks are following US markets and are currently down near to 0.70%. Locally, the All Share index closed 0.33% in the red.

US Treasury yields are a touch lower but still holding above key technical levels.

Oil is lower at $58.05 on global growth concerns while Gold is firmer at $1 506.10 as risk aversion pushes investors to safe haven assets.

Currencies

USDZAR 15.2548
EURUSD 1.0962
EURZAR 16.7140
GBPUSD 1.2215
GBPZAR 18.6245
AUDZAR 10.2797
CADZAR 11.4494
CNYZAR 2.1342
ZARJPY 7.0176
CHFZAR 15.3470

Commodities

Gold 1 505.74
Plat 892.67
Plad 1 671.35
Rhod 5 140.00
Irid 1 470.00
Ruth 248.00
Copp 5 641.00
Brent 58.00
Gold ZAR 22 958.33
Plat ZAR 13 610.72