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<p>Global and local markets have entered into a deep red state as the COVID-19 pandemic sets out economic turmoil in many countries. As central banks look to inject stimulus, it’s becoming clearer than no amount of QE can cure a virus.</p>


How to navigate market volatility amid COVID-19 pandemic

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<p>The management of the food franchising company Taste Holdings – the company behind the brands Starbucks and Dominos Pizza -will meet with staff set to lose their jobs in the company’s liquidation. Taste Holdings has closed down 55 stores making 770 workers redundant. The liquidation came after Taste Holdings failed to find a buyer for its licencing agreement for Dominos Pizza. Duncan Crosson, CEO of Taste holdings joins CNBC Africa for more.</p>


Taste Holdings liquidates its food business

Taste Holdings liquidates its food business, CEO Duncan Crosson sheds more light on the way forward


<p><strong>Key Points</strong></p>



<ul><li>The week has seen a deluge of headlines on emergency monetary and fiscal policy action from central banks and governments around the world.</li></ul>



<ul><li>Another reason for Friday’s market moves could be that some investors believe they’ve bottomed out.</li></ul>



<ul><li>Some are seeing the historic sell-off as an opportunity to capitalize on low stock valuations.</li></ul>



<p>Markets are set for a wild day of trading on Friday as volatility takes hold following a historic sell-off around the world.</p>



<p>While Thursday’s stock market was fueled by the rapid global spread of the coronavirus pandemic, and U.S. President Donald Trump’s announcement of <a href="https://www.cnbc.com/2020/03/12/lagarde-on-trump-travel-ban-doubt-very-much-that-diseases-have-passports.html">travel restrictions from Europe</a>, markets today are painting an inconsistent and chaotic picture.</p>



<p>Dow futures started in the red but reversed course during the morning to point to an <a href="https://www.cnbc.com/2020/03/12/futures-stock-market-coronavirus-concerns.html">opening gain of more than 700 points</a>. The benchmark on Thursday dropped 10% to post its worst single-day loss since “Black Monday” in 1987.</p>



<p><a href="https://www.cnbc.com/2020/03/13/european-stocks-set-for-mixed-open-after-historic-sell-off.html">European stocks</a> jumped more than 4% at the open after the pan-European Stoxx 600 posted its worst day in history on Thursday, but proceeded to cut their gains in half within the first hour of trading before rebounding once again.</p>



<p><a href="https://www.cnbc.com/2020/03/13/asia-markets-wall-street-coronavirus-stimulus-measures-in-focus.html">Asian shares</a> continued to tumble across the board, but <a href="https://www.cnbc.com/quotes/?symbol=.AXJO">Australia’s stocks</a> rebounded from an 8% decline to close 4.42% higher.</p>



<p>This move in Australian shares came after the government unveiled a $17.6 billion stimulus package as its stock index careened into bear market territory — but responses by other monetary policymakers have left markets underwhelmed.</p>



<h2 class="wp-block-heading">Policy inconsistency</h2>



<p>The week has seen a deluge of headlines on emergency monetary and fiscal policy action from central banks and governments around the world. However, the apparent lack of a coordinated global response is seemingly leaving investors scratching their heads.</p>



<p>Having already announced a 50 basis point cut to interest rates on March 3, the U.S. Federal Reserve on Thursday announced a plan to <a href="https://www.cnbc.com/2020/03/12/fed-to-pump-more-than-500-billion-into-short-term-bank-funding-expand-types-of-security-purchases.html">pump $1.5 trillion into the financial system</a> in a bid to combat potential freezes arising from the virus.</p>



<p>The European Central Bank (ECB) announced a 120 billion euro ($135.28 billion) expansion to its asset purchase program, but <a href="https://www.cnbc.com/2020/03/12/european-central-bank-stimulus-package-amid-coronavirus.html">surprised markets by opting against</a> a widely anticipated 10 basis point interest rate cut, which sent European markets deeper into the red Thursday.</p>



<p>The Bank of England earlier this week announced a 50 basis point cut to interest rates, while the British government revealed a $39 billion spending package which included funds to mitigate the economic impact of the pandemic.</p>



<h2 class="wp-block-heading">Violent rebound?</h2>



<p>Another reason for Friday’s market moves could be that some investors believe they’ve bottomed out. Global investment research firm BCA Research said Friday that its equity sentiment indicators had collapsed to levels recorded before significant market rebounds, such as those which materialized in March 2009 and October 2002.</p>



<p>“This is not a guarantee that the market will rebound in the coming days, but it suggests that we have now seen at least three quarters of the selling pressure,” BCA Bank Credit Analyst Mathieu Savary said in a research note Friday morning, adding that the data also indicates the market could now “violently rebound on any positive news.”</p>



<p>Market sentiment has hit the floor because investors are so disappointed by the response of policymakers so far, he said.</p>



<p>“Paradoxically, this growing bear market is exactly what is needed to force action from fiscal and monetary authorities,” Savary said, adding that this increases the likelihood of large fiscal packages which provide a sharp rebound in the context of “bombed out” sentiment, though the “durability of the rebound remains tenuous.”</p>



<h2 class="wp-block-heading">‘A special kind of fear’</h2>



<p>Some are seeing the historic sell-off as an opportunity to capitalize on low stock valuations.</p>



<p>Jeff Henriksen, CEO of Thorpe Abbotts Capital, told CNBC on Friday that he had been buying all of this week, based on a long-term “value-oriented” approach.</p>



<p>Thorpe Abbots’ base case is that while the economy will take a sharp hit, the impact will be temporary unless there is a “huge credit crunch,” though Henriksen suggested that monetary and fiscal policymakers will have to do more in the coming days and weeks.</p>



<p>“It is a special kind of fear that is really gripping people right now, and I think it is creating dislocations in markets that we look at,” he told CNBC’s “Squawk Box Europe.”</p>



<p>“I never thought that we would see generational lows like we did in 2008/9, in terms of valuations, in my lifetime again, but we are starting to see that.”</p>



<p>While reluctant to speculate on whether the markets have bottomed out, Henriksen said there were opportunities to buy at big discounts.</p>



<p>“In the last week, I have seen more interesting opportunities than I have seen in a very long time,” he said.</p>



<p>“Investors, if they look through all this, can find some great companies at really bargain level prices.”</p>



<p>This article was first published on CNBC <a href="https://www.cnbc.com/2020/03/13/heres-whats-driving-market-volatility-after-the-global-stock-rout.html">https://www.cnbc.com/2020/03/13/heres-whats-driving-market-volatility-after-the-global-stock-rout.html</a> and is republished with its permission.</p>


Here’s what’s driving market volatility after the global stock rout

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<p>Health insurer Discovery has cited its preparedness to handle the Coronavirus pandemic by equipping its members with benefits to navigate them through the outbreak and medical advice that all South Africans should take during the course of the COVID-19 upsurge Joining CNBC Africa for more is Dr Ryan Noach the CEO of Discovery Health.</p>


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<p>This week markets have seen declines last seen during the 2008 global financial crisis as the coronavirus, oil price slump and travel bans have sent economies and stocks into a frenzy. Joining CNBC Africa to unpack the investment cure for COVID-19 is Adrian Saville, CEO of Cannon Asset Managers.</p>


Adrian Saville on the investment cure for COVID-19

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<p>As global markets hit red once again in trade this morning we take a look at the volatility that is being seen of the Zimbabwe stock exchange. Batanai Matsika the Head of Research at Morgan &#038; Co joins CNBC Africa for more.</p>


How Zim stocks are reacting to COVID-19

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Global markets are oscillating between a deep red state and gossamer thin green, if any. The Dow has been down 13 out of the last 16 days and leading to losses across bourses and indices. And as Central banks look to inject stimulus, it’s becoming clearer than now amount of QE can cure a virus. Abdullah Verachia, CEO of The Strategists and Faculty at GIBS joins CNBC Africa for more.</p>


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Yesterday markets experienced a historic drop in shares that were last seen during the 2008 global financial crisis. The failure of Russia to agree on Saudi Arabia oil cuts led to a 30 per cent decline in oil markets but is on the path of recovery today, joining CNBC Africa to unpack what the oil price crash could mean for the oil rich nation of Angola is Rui Oliveira, CEO at BFA Asset Management.</p>


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The latest data from the International Air Transport Association has shown that despite the coronavirus spread hitting the airline industry globally; Africa recorded a 5.3 per cent rise in demand for passenger Air transport in January 2020. Joining CNBC Africa for more on the global impact of the coronavirus on the airline industries is Brian Pearce, Chief Economist at the International Air Transport Association.</p>


How the global aviation industry is navigating COVID-19

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Global markets are in bear territory after oil prices crashed after OPEC’s failure to strike a deal with its allies on production cuts last week caused Saudi Arabia to slash the price of its crude exports. Muktar Mohammed, Analyst at Assar Investments joins CNBC Africa to discuss the impact on Nigeria&#8217;s equities market.</p>


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Moody’s has downgraded Angola’s sovereign rating to B negative with a stable outlook  pricing  in the impact of lower oil production and lower oil prices. Joining CNBC Africa for today’s Africa Exchange segment is Ridle Markus, Africa Strategist at Absa Corporate and Investment Banking.</p>


Moody’s downgrades Angola’s ratings to B-minus

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With markets gyrating because of COVID-19, what should you be doing with your portfolio? Which shares should you be investing in? In this special we find out.</p>


How to COVID-19 proof your investment portfolio

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Bidvest&#8217;s headline earnings per share fell by 3.9 per cent in its first-half after new international accounting standards and a write-off of money owed by struggling South African Airways. Joining CNBC Africa to discuss that further is CEO of Bidvest, Lindsay Ralphs.</p>


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Bidvest CEO on H1 earnings, acquisition plans & COVID-19 impact

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The coronavirus continues to cause havoc with supply chains in Africa and around the world. The sweet business of honey – South Africa imports over 85 per cent of its honey from China by the way &#8211; is suffering the bitterness of this disruption. A bit of home grown skulduggery is making matters worse in Africa. John Purchase CEO of Agbiz joins CNBC Africa for more.</p>


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COVID-19 disrupts honey imports from China, here’s why this could be an opportunity for local African producers

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Global markets continue to slide as new cases of Coronavirus outside of China continue to spread and spread fast. Could the global economy be heading for a first half recession? William Attwell, Practice Leader for Sub-Saharan Africa at DuckerFrontier joins CNBC Africa for more.</p>


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COVID-19: Is it the proximate trigger that ends what has been a very long boom?

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Standard Bank of South Africa has made a R750 000 cash donation to China in a bid help the mainland country tackle COVID-19. CNBC Africa&#8217;s Karabo Letlhatlha spoke the CEO, Sim Tshabalala for more.</p>


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global markets

How to navigate market volatility amid COVID-19 pandemic

Taste Holdings liquidates its food business, CEO Duncan Crosson sheds more light on the way forward

Here’s what’s driving market volatility after the global stock rout

How medical aid scheme Discovery will fight COVID-19

Adrian Saville on the investment cure for COVID-19

How Zim stocks are reacting to COVID-19

What’s the outlook for SSA economies as markets enter bearish territory?

Angola bears the brunt of oil market crash, Moody’s downgrade

How the global aviation industry is navigating COVID-19

NSE banking index down 8.9%: A wrap of Nigeria’s FX market

Moody’s downgrades Angola’s ratings to B-minus, outlook stable

How to COVID-19 proof your investment portfolio

Bidvest CEO on H1 earnings, acquisition plans & COVID-19 impact

COVID-19 disrupts honey imports from China, here’s why this could be an opportunity for local African producers

Why this analyst is forecasting a global recession amid COVID-19 outbreak

COVID-19: Is it the proximate trigger that ends what has been a very long boom?

Standard Bank donates R750 000 to help combat COVID-19

News Tips

Advertise With Us

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