China-US tensions knock JSE
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 trade battle, Canada arrested Huawei CFO Meng Wanzhou.
She faces possible extradition to the US over the alleged breaking of sanctions against Iran.
The arrest has created uncertainty over the agreement reached at the weekend between US President Donald Trump and his Chinese counterpart, Xi Jinping.
Earlier, data from the Reserve Bank showed that SA’s current account deficit had worsened to 3.5% of GDP in the third quarter from 3.4% previously.
Analysts said the number was expected and had little effect on domestic markets, with the China-US concern the big news of the day.
The JSE all share closed 1.75% weaker at 50,806.06 points, with banks and financials the biggest losers, down 3% and 2.29% respectively.
Industrials fell 2.08%, while platinum and gold miners made good gains in the risk-off environment.
FirstRand fell 3% to R65.25, Standard Bank 3.29% to R172.80, Absa 3.36% to R154.14 and Nedbank 3.14% to R257.87. –