Global markets impacting negatively on the rand

The volatility on international markets is continuing today as investors worry about a possible recession in the US. The latest market developments had an impact on forex markets where the rand gave up its gains made late yesterday, while stock markets across the globe remained in the red. Analysts say the negative sentiment is likely to spill over to domestic markets. On the capital market the yield on the R153 government bond ended yesterday at 9.7%.

International markets
US stocks fell for a third session yesterday, as investors dumped financial shares on fears of more credit losses and concerns that the US economy may already be in recession. The sell-off in financial stocks picked up speed after rumours that Bear Stearns was facing a cash shortage. Texas Instruments' stock also sank after the company cut its first-quarter profit and revenue outlook. The Dow Jones fell 154 points to 11 740. The Nasdaq Composite sank 43 points to 2 169. The S & P 500 tumbled 20 points to 1 273.

Weaker banking and mining stocks stumped Europe's major markets yesterday. London's FTSE 100 shed 71 points to 5 629. In Paris the Cac 40 gave up 52 points to 4 567, while Frankfurt's DAX fell 66 points to 6 448.

Tepid world markets and continued fears over a recession in the US weighed on the JSE. The all share index tumbled 603 points to 30 115. Financials retreated 175 to 19 690, while climbed 205 points to 23 082. The gold board plunged 114 points to 2 666. The top 20 resources shed 2867 points to 67 123.

Markets in the Asia-Pacific region are under pressure this morning. In Tokyo, the Nikkei dipped 48 points to 12 489. In Hong Kong the Hang Seng fell 296 points to 22 410, while Sydney's ASX tumbled 72 points to 5 109.

Platinum is trading at $2025/oz and the spot price for Brent crude oil has risen to $105.75 a barrel.

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