South African stocks and rand decline as US recession concerns rise, prompting rate cut expectations.
South African stocks and the rand fell due to growing concerns of a US recession, with global investor sentiment towards riskier assets declining significantly. The rand weakened by 1.2% to trade at 18.50 against the dollar and the Top-40 index dropped by 2.5% in early trade. Analysts suggest the Federal Reserve may need to be more aggressive with rate cuts to avoid a recession. Traders are pricing in a 70% chance of a 50 basis point cut in September.
August 05, 2024
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