The Russian Ruble recovers from worst levels

Source: Pixabay

Rand update
The rand firmed to just below the R15.00 level but ended the day flat at R15.11 and remains entrenched in the R14.95/R15.25 range for now.

We are currently trading at R15.08 and remain the star EM performer. The Russian Ruble has also recovered from its worst levels on the back of the partial troop withdrawal. Look out for local CPI numbers later today, with economists looking for a 5.7% YoY number for January versus December's 5.9% print.

Commodity update

Gold fell heavily from yesterday's $1,879 high as risk sentiment improved and closed 0.9% weaker at $1,853. Platinum ended flat on the day, Palladium fell 4.8%, while Copper managed to close above $10,000. Gold and Platinum are trading relatively unchanged this morning at $1,853 and $1,026, respectively, while Palladium is up over 2.0% at $2,296. Oil also slipped after the Russian news, with Brent closing at $93.28 and WTI at $92.07, which is where we are currently trading flat in the Far East.

International update

The slight easing in geopolitical tensions seems to have shifted the focus back onto US interest rates. US bond yields have jumped in the longer end, with the 30y-yield up at 2.35% and the 10y-yield up at 2.03%, while the shorter 2y-yield is steady at 1.56%. The DXY index is currently at 96.04, with the Dollar trading at 1.1355 against the Euro and at 1.3550 against the Pound.

The improved risk appetite saw Wall Street recover yesterday as the S&P was 1.58% higher, the Nasdaq was 2.53% stronger, while the Dow gained by 1.22%.

US futures have opened softer this morning, but Asian markets are following the positive move on Wall Street with all the major indices up on the day. The local ALSI ended slightly positive at 75,853.