Sign in
Research link-chevron Created with Sketch.
link-chevron Created with Sketch. Products and Services link-chevron Created with Sketch.
link-chevron Created with Sketch. Products and Services
Economics link-chevron Created with Sketch.
COVID-19 Tracker
FX Report
The Loop
Inside China
Insights & Strategy
Equities link-chevron Created with Sketch.
Corporate Commissioned Research
Analysts
Analysts
Help and Support
Help and Support
Corporate and Investment Bank
Standard Bank Group
In the loop 11 January 2022

In the loop

Shireen Darmalingam

What you should know this morning:

  • The rand is stronger this morning, at R15.67/$, after closing weaker yesterday (R15.70/$*).
  • EM currencies were mixed yesterday; the RUB (+1.0%), INR (+0.4%) and IDR (+0.4%) were amongst the biggest gainers; the CLP (-0.9%), ZAR (-0.8%) and BRL (-0.6%) were amongst the biggest losers.
  • Asian equity markets are mixed this morning; the Nikkei and Shanghai Composite are down, while the Hang Seng is up.
  • The US CDC has raised its travel advisory for Canada to Level 4, the highest level, and has advised against travel to Canada. 
  • The CDC also advises against travel to France, Spain and Sweden.
  • Japan is expected to extend is border measures until the end of February as cases surge.
  • Pfizer is developing a hybrid vaccine that combines its original jab with a formulation that protects against the Omicron variant.
  • Fed Chair Jerome Powell has commented that the Fed will keep inflation from becoming entrenched, but post-pandemic growth may look different from previous expansions.
  • Powell commented that the US economy has rapidly gained strength despite the ongoing pandemic.
  • This has led to persistent supply and demand imbalances, bottlenecks and elevated inflation.
  • Powell is due to testify before the Senate today and will likely be questioned on rising inflation concerns.
  • US CPI for December, due on Wednesday, is expected to have increased to 7% y/y, the biggest advance in almost 40 years, from 6.8% y/y in November. 
  • This could see more Fed officials signal appetite for rate hikes as soon as the March FOMC meeting.
  • Japan’s leading index increased to 103 pts in November, from 101.9 pts in October.
  • The coincident index, which measures current economic conditions, also increased, to 93.6 pts, from 89.8 pts in October. 
  • SA has the 18th highest caseload, at 3.526 million; 2,409 new cases were reported yesterday.
  • Active cases are at 144,355; KwaZulu-Natal leads the way, with 60,824 active cases, followed by the Western Cape with 25,159.
  • Covid-19 deaths rose by 77 yesterday, to 92,530; 3.291 million people (or 93.3%) have recovered from the virus.
  • 21.570 million tests have been conducted since 5 March 2020; the positivity rate is at 14%.
  • 28.417 million vaccines have been administered in SA to date; 83,842 vaccines were administered yesterday.
  • 15.8 million people, or 39.78% of the adult population, have been fully vaccinated.
  • The November manufacturing data is expected to have contracted, by 3,6% y/y, following a decline of 8.9% y/y in October.
  • Production is expected to have increased by 5.1% m/m, from a decline of 5.9% m/m in October.
  • The EIA will release its short-term energy outlook today.
  • Brent crude oil is up this morning, and up by 4.4% year-to-date.
  • The gold price is up this morning, and down by 1.2% year-to-date.
  • Brent crude oil is currently at $81.28/bbl; ($80.87/bbl*).
  • Gold is at $1806/oz ($1799/oz*).
  • SA CDS 200bps*, Brazil 216bps* and Turkey 580bps*.
  • Yields: US 10yr at 1.76%*, German bund at -0.034%* and SA 10-year generic at 9.91%*, SA’s R186 at 7.93%*.

* Denotes yesterday’s close.

Key events and data: 

  • 07h00: Japan leading and coincident indices (November)
  • 13h00: SA manufacturing production (November)

Read PDF