MARKET WRAP: Markets thrown into disarray on renewed US-China jitters
The JSE and rand take a pounding as global risk aversion dominates markets after Canada arrests Huawei CFO for possible extradition to the US
Global risk aversion was the order of the day on Thursday resulting in both the rand and the JSE coming under substantial pressure. Just days after Chinese and US leaders agreed to put a moratorium on their months-long trade battle, Canada arrested Huawei CFO Meng Wanzhou. She faces possible extradition to the US on charges of breaking sanctions against Iran. China has called for her immediate release.The arrest has created uncertainty over the agreement reached at the weekend between US President Donald Trump and Chinese counterpart Xi Jinping. At 6.13pm the rand had lost 2.24% to the dollar, at R14.1505, while the benchmark R186 government bond weakened to 9.05%, from Wednesday's close of 8.96%. Against the euro, the rand had fallen 2.69% to R16.1309 and 2.75% to the pound to R18.1181. The euro was at $1.1365 from $1.1345. Earlier, data from the Reserve Bank showed that SA’s current account deficit had worsened to 3.35% of GDP in the third quarter from 3.4% previously. Analysts sa...
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