JOHANNESBURG: South Africa’s rand was stable in early trade on Thursday, as markets traded cautiously ahead of US jobless claims data that could be a major driver globally.

At 0805 GMT, the rand traded at 18.41 against the dollar , the same level it closed at on Wednesday.

South African assets including the rand plunged on Monday, caught up in a global sell-off linked to US recession worries.

They have staged a recovery since, but analysts caution that sentiment is still fragile.

South African rand firms to 11-month high, local inflation in focus

“Investors are currently highly sensitive to any negative news that could hint at a (US) recession,” said Andre Cilliers, currency strategist at TreasuryONE.

“Currency and commodity markets are keeping within recent ranges ahead of today’s US jobless claims number with traders in cautious mode,” he added. At 1100 GMT Statistics South Africa will publish June manufacturing output figures.

Analysts polled by Reuters predict a 0.9% contraction in year-on-year terms and a 1.3% expansion month-on-month.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index traded about 0.5% weaker in early trade.

South Africa’s benchmark 2030 government bond was also weaker in early deals, with the yield up 3.5 basis points to 9.415%.