5 things you need to know in business today
·24 Jun 2016
Here’s what is happening in the markets:
- In a rather surprising move, Britain has voted to leave the European Union in its referendum held on Thursday. Many economists and analysts had predicted a “stay” vote, but the nearly complete results showed a 51.7%/48.3% split for leaving. While the long-term effects of the vote are yet to be seen, the immediate impact was panic, with several currencies, including the South African rand, losing ground in the markets.
- A special investigative unit has been deployed to look into the riots which erupted in South Africa’s capital this week. So far a number of arrests have been made relating to the violence and looting which took place. The Tshwane unrest has had little impact on the markets so far, but economists warn that the situation paints a bleak picture for what lies ahead this year.
- South Africa’s rand weakened as Britain voted to leave the European Union, knocking risk appetite. Stocks closed flat on Thursday, failing to find footing in the volatile global markets as investors cautiously eyed the outcome of the British vote. In the morning, the rand was trading significantly weaker against the dollar at R15.55, R21.05 to the pound and R17.14 to the euro.
- In global markets: Carnage came to global markets on Friday as results of an historic referendum showed Britain had voted to leave the European Union, sending sterling on a record plunge and pummelling equities across the world. S&P 500 and Nasdaq E-mini futures plummeted 5 percent early on Friday, hitting overnight limit thresholds, after the vote.
- Oil prices slumped more than 4 percent in Asian trading after results so far from a British referendum on European Union membership showed the “Leave” camp holding a lead. U.S. crude was down $2.77 at $47.34 a barrel, while Brent crude was down $2.75 at $48.16 a barrel.
In other news: The High Court will today decide whether or not president Jacob Zuma and the NPA can appeal its ruling that the president should face corruption charges. The DA is confident that leave to appeal will be denied, but it is expected that in any event, the parties will go to the Supreme Court of Appeal directly.
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