Global stock markets, JSE fall hard as South Africa faces political and economic turmoil

STOCK markets around the world got a bloody nose for a second day on Friday, and the JSE All Share Index slumped 5.26% as investors reeled from a global recession owing of Covid-19, Trump's import tariffs and an expanding global trade war.

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Adding fuel to the fire in South Africa are steepening political risks. There was talk in the US of a review of ties with South Africa given its links with Russia, China, and sanctions on certain South African officials have been mooted.

The JSE Resources Index slumped 9.77%, the JSE Precious Metals and Mining Index was down 8.83%, chemical counters fell an average 6.58%, banks making up the Industrial Metals index fell 10.03%, while the JSE Health-care index fell 5.68% from the gloom since the middle of Covid, raised to be a safe haven asset in times of investor uncertainty - fell 3.17% to R3025.73 per ounce in trade today.

The Brent crude oil price also slumped since the middle of Covid since the middle of Covid lockdowns in 2020 as China, in turn, raised tariffs on US goods in the most serious escalation in a global trade war.

The rand traded at 1.5% weaker at 19.0175 per dollar on Friday afternoon, down about 5% on Thursday's closing level. The rand plunged more than 5% against the dollar last week.