Global equity market sell off : the worst start to the year in decades
13 January 2016
The sharp decline of global stock markets during the first week of the year, after Chinese market events sent them into a tailspin, proved to be the worst start to the year for the US in the past three decades and the All Share Index in at least two decades. According to Peter Brooke, Head of Old Mutual Investment Group’s MacroSolutions boutique, the implications of this selloff for SA include a weaker rand, more inflation, additional rate hikes, fiscal tightening and weaker economic growth. However, it is difficult to gauge the extent to which the local economic environment will deteriorate this year.