Rand softer as dismal Chinese data spoils investors’ appetite
A Chinese purchasing managers index for January fell to a three-year low, souring market sentiment, while the US and North Korea have opted not to sign a deal on sanctions
Disappointing Chinese economic data as well as an early end to a US-North Korea summit weighed on the rand on Thursday morning, with the local currency hovering just below the R14/$ handle. A Chinese purchasing managers index for January fell to a three-year low, while markets also digested comments from US officials that a trade deal with that country was by no means assured. “The realisation that there is still considerable work to be done for the US and China to reach a trade agreement, plus further evidence of economic activity in China slowing is leaving little for traders to cheer on Thursday,” said London Capital Group analyst Jasper Lawler.
A summit between US President Donald Trump and North Korean leader Kim Jong-un also concluded early, with Trump saying that there had been “substantial progress”, but that parties had opted not to put anything in writing. Trump said the failure to sign was due to a lack of consensus on sanctions, but that North Korea had pledged to ...
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