Daily Commentary: Strong dollar and higher oil prices weigh on global markets and the rand

Asian stocks and bonds fell after stronger-than-expected US jobs data dampened hopes for further Fed rate cuts.

MSCI’s regional equities index extended its decline, and US equity futures signalled deeper losses following the S&P 500’s 1.5% drop on Friday.

Brent crude rose above $81/barrel after a 4% surge on Friday, driven by US sanctions targeting Russian oil exports, insurers, and tankers. Higher oil prices could further complicate central banks’ inflation control efforts.

The dollar has strengthened, nearing a two-year high, while China intervened to support the yuan after its sharp decline.

Traders now await US inflation data and other key economic indicators, which are due out later this week.

The rand started the year on the back foot as the dollar surged. It starts the week at R19.14/$, R19.56/€ and R23.26/£.

#MarketNews #CitadelGlobal #FinanceNews