SOUTH AFRICA: South African Supply Chain Pressures at New High
May-31 06:40
- EWN reports that calls for the fuel levy to be scrapped are growing, and a scrap of the levy would help South Africans who are struggling to make ends meet. The levy reportedly collects around R90bln per year, but the report sees the Treasury being forced to look at other interventions to head off the energy crisis.
- Moneyweb cites research from PWC finding that supply chain pressures across South Africa are now worse than at the height of the pandemic and the Global Financial Crisis. The report writes that South Africa are facing global issues including the invasion of Ukraine as well as lockdowns in China on top of domestic issues including the KwaZulu-Natal floods and loadshedding/rolling blackouts. PWC have marked down their 2022 GDP forecast to 2%.
- Unemployment rate and trade balance data crosses later today, as well as a R3.9bln bond sale of 2021, 2037 and 2044 debt.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
USDCAD TECHS: Corrective Pullback
Apr-29 20:00
- RES 4: 1.2964 High Dec 20 2021
- RES 3: 1.2936 2.0% 10-dma envelope
- RES 2: 1.2901 High Mar 8
- RES 1: 1.2880 High Apr 28
- PRICE: 1.2804 @ 16:59 BST Apr 29
- SUP 1: 1.2648 50-day EMA
- SUP 2: 1.2568 Low Apr 22
- SUP 3: 1.2459 Low Apr 21
- SUP 4: 1.2403 Low Apr 5 and a key support
USDCAD remains bullish and added to the week’s gains Thursday. However, the pullback from 1.2880, Thursday’s high, highlights potential for a short-term correction. A key near-term support lies at 1.2648, the 50-day EMA. A clear break of this support is required to suggest scope for a deeper pullback. For bulls, a resumption of gains would refocus attention on 1.2901, the Mar 8 high. This is also the bull trigger.
US TSY FUTURES: BLOCK, Late 10Y Buy
Apr-29 19:57
- +7,500 TYM2 119-00.5, buy through 119-00 pst-time offer at 1551:35ET
US TSYS: Data-Driven Vol, Yields Higher, Stocks Extend Wk Lows
Apr-29 19:54
FI markets traded weaker after the bell, off early session lows amid data-driven vol in the first half. Quiet second half trade ensued even as equities fell back to late Tuesday levels (SPX -3.6% to 4128.0)
- Rates trade weaker, curves bear flattening with short end underperforming (Block sale: -10,000 TUM2 105-10.88, sell through 105-11 post-time bid at 0841:030ET) after Personal Income: +0.5%/MoM vs. +0.4% est, Spending +1.1%MoM vs. +0.6% est, PCE Deflator in line at +0.9%, Employment Cost Index is +1.4% vs. 1.1% est.
- FI levels rebounded sharply after April Chicago Business Barometer™ fell to 56.4 vs. 62.0 est. Prices Paid ticked up a modest 0.4 points to 86.1 with over three-quarters of firms citing higher prices this month. The Ukraine war was cited as inflating steel, plastics and lumber costs.
- Data driven volatility evaporated by midday with rates hold to a relative narrow range, yield curves flatter but off lows (2s10s -1.116 at 18.994 vs. 13.399L; 5s30 -1.867 at -3.742 vs. -6.508L).
- Focus turns to next Wednesday's FOMC policy annc, 50bp expected, Tsy refunding early Wednesday as well.
- The 2-Yr yield is up 7.7bps at 2.6943%, 5-Yr is up 7.3bps at 2.9124%, 10-Yr is up 5.9bps at 2.8811%, and 30-Yr is up 4.9bps at 2.9413%.
Trending Top
Mar-27 20:13
