Daily Market Commentary: 19 July 2019

·       SARB cut viewed as cautious by the market, yields decline nonetheless

·       USD on the back foot on Fed’s interest rate outlook

·       Oil snapped four days of losses after an American warship downed an Iranian drone near the Strait of Hormuz, stoking concerns crude flows from the Middle East may be disrupted

·       Disappointing earnings reports weigh on European markets, while optimism of a potential US rate cut lifts US and Asian markets

·       SARB reduces repo rate by 25bps; US leading index contracts, signalling deteriorating growth; UK retail sales rebound; Japanese CPI

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