The almost “no deal” in the trade negotiations between the US and China, the almost “no deal” in the Brexit ordeal and the noises on a possible impeachment of US President Donald Trump had devastating effects on South African equity prices and the rand.
The pattern continued during the first half of last week as more and more economic data started to emerge that pointed towards a stronger downturn in global economic growth than was anticipated. Weaker US and European manufacturing data released last Monday, as well as weak earnings reports from carmakers, are forcing investors to reconsider their strategies.
The most recent economic numbers are driving concerns that a slowdown, which had been mostly confined to manufacturing, may be spreading to the consumer as the US-China trade war drags on.
US stocks tumbled to their lowest since August by Wednesday as another disappointing report fuelled fears that the US economy was slowing.