The rand hit an all-time low on Wednesday amid volatile trading, as concerns over U.S. President Donald Trump's trade war and the risk of a split in South Africa's market-friendly coalition government unsettled investors. The rand came in at 19.93 to the dollar, surpassing the previous record low of 19.90 in June 2023, according to data from the London Stock Exchange Group as reported by Reuters. By 15h33 GMT, it had recovered slightly to 19.81 but remained down 0.20% on the day and over 3% lower for the week. The Johannesburg Stock Exchange's Top-40 index closed 2% lower, and the benchmark 2030 government bond yield rose 10.5 basis points to 9.305%.

In the U.S., stocks were volatile, continuing the selloff from recent sessions, as escalating tariffs and retaliation from major trading partners stoked recession fears. The S&P 500 hovered below the 5 000 mark, while the Dow and Nasdaq remained near their lowest levels in over a year. China raised tariffs on U.S. goods to 84% and added companies to its no-export list, after the U.S. imposed a 104% tariff, while the EU confirmed tariffs on $22 billion worth of U.S. goods.

In the UK, the FTSE 100 fell 2.90%, hitting a 14-month low near 7 680, as markets reacted to the growing US-China trade tensions. China’s announcement of an 84% tariff on U.S. goods and the U.S.'s new tariffs on Chinese imports caused significant market turmoil. The European Union also approved tariffs on around €21 billion ($23.2 billion) of U.S. goods.

The sell-off continued across the Eurozone, with the STOXX 50 index dropping 3.10% to 4 620 points, its lowest level since August 2024, and the broader STOXX 600 falling 3.70% to 470 points, marking its weakest level since November 2023.

In Asia, Japanese stocks also fell as U.S. tariffs came into effect, with the Nikkei 225 down 3.93% to 31 714 and the Topix Index falling 3.40% to 2 349. Meanwhile, mainland Chinese stocks saw gains, with the Shanghai Composite up 1.31% to 3 187 and the Shenzhen Component rising 1.22% to 9 540. The Chinese government took steps to stabilise markets, encouraging state-owned financial institutions to increase equity investments and several companies to announce share buybacks.

In the commodities market, WTI crude oil futures tumbled 6% to below $56 per barrel, their lowest level since February 2021, as fears of a global slowdown weighed on energy markets. Gold, on the other hand, surged nearly 3% to over $3 060 per ounce, driven by safe-haven demand amid concerns over a potential global recession triggered by the ongoing trade war.