JSE closes sharply lower as global markets slump on renewed trade-war threat
The JSE closed weaker on Tuesday in risk-off trade as concern about an escalating trade war between the US and China hit global markets.Miners struggled despite the weaker rand, while rand hedges were mixed.The rand lost nearly 2% at one point, weakening to R13.9168 before recovering slightly, which would normally benefit miners and rand hedges which have most of their assets or activities offshore. Investors remained largely on the sidelines, however, seeking safe-haven investments such as US bonds or the yen, on the day."It’s difficult to see how and when this ends," said Oanda analyst Craig Erlam, adding that the clear escalation that had occurred in recent days had shaken investors and appeared to have brought an end to the good run that US stock markets had been on since the start of May."While Chinese stocks are faring much worse at the moment, US companies are obviously not immune to a trade war and could come under more pressure unless both sides find a solution," Erlam said...
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