EU economy in recovery – ECB

EUROPEAN Central Bank (ECB) president Mario Draghi said on Friday that this year marked the first year when gross domestic product (GDP) in the euro zone recovered to above its precrisis level since 2008. The temporary rebound within 2010 and 2011 was essentially a jobless recovery whereas the current recovery had reduced the unemployment rate to 10 percent at the current stage in the euro area, with the labour participation rate expanding, Draghi said. Domestic demand has replaced foreign demand as the main driver of growth in the single currency area consisting of 19 EU countries. “Over the past two years, domestic demand has on average added more than a percentage point to GDP growth, supported by very accommodative financing conditions,” Draghi said. He said economic recovery needed support from a strong banking sector, which had become more robust. – Xinhua THE RAND recouped earlier losses against the dollar on Friday, with investors opting to head into the weekend on neutral ground ahead of Thursday’s domestic rates decision.

The rand slumped to an 11week low of R14.65 earlier in Friday’s session, but was bid at R14.3671 at 5pm, 7.65c weaker than at the same time on Thursday.

Traders and analysts say the rand is looking oversold after slumping from last week’s high of R13.1725 in an emerging market sell-off triggered by Donald Trump’s surprise victory in the US presidential election.

“We still see rand weakness fading towards R14. But markets are nervous, and patience is required,” Standard Bank said in a note.

Stocks were little changed as gold shares lost their shine. The Top40 index ticked up just 0.1 percent to 44 216 points and the all share index inched up 0.02 percent to 50 626 points.

Gold stocks were the weak-