The market was driven mainly by a stronger dollar after the FOMC meeting last night. The Rand, EM’s and equities did not fare well as the target rate by the Fed was effectively moved higher, and we saw the rand down 1.3% at a stage. After trading above R18.50, we have seen some consolation in the market and the rand is trading in the mid R18.30’s. The pound fell into more difficulties after the BoE hiked 75bps, their largest rate hike in 33 years, but the market focused more on the recession warming that could last into Q1 in 2024. The pound slid from 1.14, where it opened this morning, to a low of 1.1170. 

The commodity sector has been under pressure across all industries, with demand concerns as the key driver for the day. Gold is back at its two-week low and down 0.5% for the day. Copper has bounced back from the intraday low, while platinum and palladium record losses on the day. Brent Crude is seen trading at $94 per barrel, with rising concerns over global recession weighing down the commodity space.

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