China-US ten­sions knock JSE

The Herald (South Africa) - - Your Business -

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. –

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