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

STOCK markets around the world got a bloody nose on Friday, and the JSE All Share Index slumped 9.77% as investors reeled from a global trade war, import tariffs and expanding global trade war.

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

The Resources Index slumped 9.77%, the JSE Precious Metals and Mining Index was down 13.37%, chemical counters fell an average 9.88%, consumer goods making industrials index fell 10.03%, while the JSE Health-care Index fell 5.88% from the carnage. The yellow metal is now looked at to be a safe haven asset in times of investor uncertainty – fell 3.07% to R3025.73 per ounce in trade today.

The Brent crude oil price also slumped since the middle of the Covid pandemic in 2021 as China, in turn, raised tariffs on goods in the serious escalation in a global trade war.