This morning Asian markets have reacted negatively to the news surrounding Trump’s additional tariffs overnight. President-elect Donald Trump announced plans to impose a 10% tariff on all Chinese imports and a 25% tariff on goods from Mexico and Canada, ending the regional free trade agreement. These measures, tied to his first executive orders upon inauguration on Jan. 20, are aimed at addressing illegal immigration, the drug trade, and fentanyl trafficking.
Ukraine has urged South Africa to use its upcoming G20 presidency, beginning December 1, to pressure Russia to end the war that began in February 2022. While nations like the U.S., UK, and EU have supported Ukraine financially and imposed sanctions on Russia, South Africa has maintained a neutral stance, focusing on peace efforts through an African-led mission.
Ukraine has signalled a willingness to engage in peace talks with Russia, a shift from its earlier position, as reaffirmed by its foreign minister Andrii Sybiha during an October visit to South Africa. The G20, now including the African Union alongside major economies like China, India, and the US, offers South Africa a platform to influence conflict resolution.
The day ahead sees the release of the SARB’s Leading Indicator for September 2024. The SARB’s composite leading indicator decreased slightly to 112.8 points in August from 113.6 points in July. Still, the index has remained above 112.0 points since April 2024 and recorded year-on-year growth for five consecutive months up to August, indicating ongoing economic recovery in South Africa. GNU-led optimism, a stronger ZAR, the absence of load-shedding and falling inflation have contributed to improved business conditions in the economy.