Global stocks were pressured by a poor start to the second quarter in the US, where carmakers reported disappointing sales data, slamming auto stocks around the globe. The selling has persisted for a second day, with Asian stocks and European shares all partially in the red today after their biggest decline in two weeks. Car sector is biggest mover in Europe, offsetting gains in financial services and media.
In his first comments to journalists since his stunning termination by South Africa's president Zuma on Thursday night, ousted finance minister Pravin Gordhan dismissed an intelligence report used to justify his sacking as “absolute nonsense”. Quoted by the FT, the internationally respected, if feuding with Zuma, Gordhan said the report, which alleged he was plotting to overthrow president Jacob Zuma, was “not the basis on which you fire a minister”.
Stocks fell worldwide on the last day of the quarter, with US equity futures pointing to a lower open even as the S&P is set for its best quarter since 2015 amid persistent economic and political uncertainty.
The rand tumbled as much as 1.7% and banking shares on the Johannesburg bourse fell more than 2% after South African President Jacob Zuma unexpectedly ordered Finance Minister Pravin Gordhan to return from an investor roadshow to Britain and the United States on Monday because he "did not give permission for the trip" a government source said.
"They were told last night or this morning to come back... the presidency did not give permission for the trip," the government source said.
Authored by Alexander Mezyaev via The Strategic Culture Foundation,