US earnings, trade talks, are leading to market volatility
JOHANNESBURG – Despite the better-than-inflation number of 4.1percent (expected at 4.2percent) in September and a much stronger rand exchange, equity prices stayed nervous, volatile and under pressure last week.
US company earnings were mixed with many performing weaker than expected. Companies like Amazon.com and Anheuser-Busch InBev, which recorded disappointing returns, kept a lid on positive sentiment on Wall Street.
Together with the uncertainty around Brexit, a possible election in the UK and the ongoing negotiations to reach a deal in the trade war between the US and China, financial markets across the world came under strain.
Although the S&P 500 index in the US finished Thursday just 0.5percent from its highest-ever close, stock prices remain volatile and nervous and were traded down especially last Thursday and Friday.
In Europe, food and beverage shares led decliners on the Stoxx Europe 600 index.
Source: iol.co.za