Slight recovery from Covid-19 market scare

JOHANNESBURG – The markets and emerging markets currencies yesterday slightly recovered from last week’s bloodbath as fear continued to spread that the coronavirus could push the global economy into recession.

The rand recovered to R15.64 to the dollar at 5pm after having weakened to R15.89 against the dollar in the early hours of the morning.

Markets closed sharply in the red on Friday, weighed down by significant losses in gold, platinum and retail sector stocks during the worst risk sell-off since the 2008 global financial crisis as the spread of the virus spooked investors.

Global markets are now betting that the Federal Reserve will slash rates by 50 basis points later this month.

There are also expectations that production cuts from oil organisation Opec and stimulus from global central banks might offset economic gloom from the coronavirus outbreak.