The local bourse extended losses on Tuesday, while the rand recovered some ground as global markets attempted a rebound after Monday’s decline. The FTSE/JSE All Share Index (ALSI) fell by 0.19% to 79 430 points, a recovery from Monday’s 2% decline. The rand strengthened by 0.18%, trading at R18.48/$ at 22h45 local time.
Major European bourses closed mixed, with the STOXX 50 falling by 0.10% and the STOXX 600 rising by 0.20% after a brief morning rebound, as concerns about the economic outlook remain. German factory orders unexpectedly surged by 3.90%, well above the anticipated 0.80%, providing a boost to the struggling manufacturing sector.
In Asia, the Nikkei surged by more than 10% to 34 675 on Tuesday, recovering from a more than 12% drop in the previous session, which marked the worst decline since “Black Monday” in 1987. This volatility was driven by a rapid unwinding of the yen “carry trade” as the Bank of Japan’s hawkish stance led to a strong yen rally. Meanwhile, China’s Hang Seng index ended lower by 0.20% on Tuesday.
In the US, equities staged a strong comeback on Tuesday, after a three-day slump that had erased a significant portion of the market's 2024 gains. The S&P 500 and Nasdaq each gained over 1%, while the Dow Jones rose by 1.47% as investors took a break from recession worries.
In commodities, gold traded at $2 388 per ounce lower, and Brent crude was priced at $76.26 per barrel.
