Global markets hit a new two-year low on Friday as central banks’ decision to ramp up interest rate hikes sent stocks into a sea of red the world over while the JSE slumped to a new low for the year at one point and is around 14% down for 2022.
The local bourse slumped 2.85% on Friday as investors digested another hefty 75 basis point (bps) hike from the SA Reserve Bank with the All Share Index closing at 63,417 points.
In the US, the Dow Jones, Nasdaq and S&P 500 were all down at 5pm as investors digest more hefty rate hikes from the Federal Reserve this year and into next year as it tries to put the lid on runaway inflation and bring it back down to just 2%.
Meanwhile, oil slumped to below $80 a barrel – its lowest point since January – as global recession fears began to set in and a rampant US dollar marches on in strength.
On the currency front, the greenback is trading nearly 2% higher against the rand with the local unit struggling at R17.94/$ with the R18.00 level in sight.
