Markets on the edge amid Middle East tensions and Fed uncertainty

SOUTH Africa's markets faced a turbulent day on Tuesday as they traded on the backfoot, grappling with the ongoing hostilities in the Middle East and uncertainty surrounding the US Federal Open Markets Committee’s (FOMC) upcoming decision on interest rates.

- SIPHELELE DLUDLA

The JSE All Share Index fell 0.7% to 94 695 by 4pm while the rand was weak and traded above the R18.80-mark against the US dollar after reaching R17.70/$1 as the severe escalation in the conflict in the Middle East has increased market risk aversion.

Stocks such as Karooooo, Assura and Harmony Gold saw the most declines, falling 4.55%, 4% and 3.3%, respectively.

However, the marked US dollar weakness of the second quarter continued to persist amid heightened volatility.

The escalation of conflict in the region reached new peaks following a stark warning from US President Donald Trump, who urged Iranians to evacuate Tehran. This statement has intensified fears regarding a possible escalation in the Iran-Israel conflict, contributing to an anxious trading atmosphere.

According to reports, Iran has threatened to execute what it claims will be the largest ballistic missile assault on Israel within the next few days, in response to Israel's military targeting of its governmental facilities.