Domestic economic woes leave financial markets reeling
JOHANNESBURG – The aftermath of the further downgrading of South Africa’s sovereign debt by S&P 500 to junk with a negative outlook, the negative report on economic prospects for the country by the International Monetary Fund, the news that Eskom’s debt now stands at R454 billion and negative perceptions on the country’s growth prospects, all contributed to a week where investors got rid of South African shares.
Share prices and bond rates remained under pressure, although the rand stood its ground.
Various reports on dwindling earnings from listed companies also contributed to a week of losses on the JSE.
Globally, trade talks between the US and China came to a halt after President Donald Trump on Wednesday signed harsh legislation that authorises sanctions on Chinese and Hong Kong officials responsible for human rights abuses in Hong Kong.
The Trump Administration as well as the US opposition democrats are openly supporting the pro-democracy activists. This support sparked fury among Chinese officials and increased escalating tensions between Beijing and Washington.
Source: iol.co.za
