The South African rand was marginally stronger in early trade on Wednesday, as lawmakers were due to vote on the first pieces of budget legislation later in the day.

If the vote passes, it could boost local asset prices as there will be greater certainty over the fiscal trajectory after months of political wrangling.

Disagreements in the coalition government have delayed the budget, but most of those have been resolved following changes made in a third budget version presented by Finance Minister Enoch Godongwana last month.

At 0720 GMT the rand traded at 17.6950 against the dollar, up 0.1% on Tuesday's closing level.

A domestic business confidence index is set for release at 0930 GMT.

The dollar last traded about 0.2% stronger against a basket of currencies, after the US and China concluded trade talks in London with a "framework agreement" that hinted at a thaw in relations but offered little detail.

US inflation data later on Wednesday could set the tone for markets globally.

South Africa's benchmark 2035 government bond was weaker in early deals, with the yield up 4.5 basis points to 10.115%.