Last week in review
In South Africa, shares gained momentum, with the All-Share Index rising 0.65% and the Top 40 climbing 0.69%. Resources led the charge, surging 3.90%, while the rand strengthened against the dollar, trading at R17.32, up 2.14%, contributing to a broadly positive market tone.
Wall Street’s key indices traded near record levels on Friday as investors digested strong corporate earnings and indications of progress in US-China relations. The S&P 500 rose 0.32% and the Nasdaq 100 closed 0.51% higher, while the Dow climbed over 100 points, building on the all-time highs reached in the previous session.
European equities closed modestly higher, as gains in the heavyweight financial sector offset mixed performances across other areas, while investors continued to digest key monetary policy developments from the week. The Eurozone’s STOXX 50 rose 0.20% to 5 467, with the broader pan-European STOXX 600 largely unchanged at 555. In contrast, the FTSE 100 underperformed, slipping 0.12%.
In Asia, currencies were generally weaker, with the Hang Seng down 0.04%, the Nikkei falling 0.57% and Shanghai closing 0.18% lower, reflecting a more cautious investor mood across the region. Stock markets showed mixed performances following Japan’s annual inflation rate easing to 2.70% in August from 3.10% the previous month, marking the lowest reading since October 2024. Meanwhile, foreign direct investment (FDI) in China fell 12.70% year-on-year, although Japanese investment in China rose sharply by 58.90%. Despite the overall decline, foreign capital continued to show strong interest in China’s high-tech sectors, highlighting sustained investor focus on advanced industries.
On the commodity front, gold continued its strong run on Friday, climbing to $3 680 per ounce, up by nearly 1% and marking a fifth consecutive weekly gain. Following Wednesday’s Fed rate cut, spot gold briefly touched a record $3 707.40 before pulling back amid volatile trading.
Thanks to PSG for the summary of last weeks market activity.
Financial indicators by Sharedata.co.za
Reserve Bank keeps rates steady as consumers wait for relief
South Africans hoping for a drop in their loan repayments will have to wait a little longer. The South African Reserve Bank’s (Sarb) Monetary Policy Committee (MPC) decided this week to keep the repurchase rate unchanged at 7%, which leaves the prime lending rate steady at 10.50%. Read the full article on MSN here>
Gold hits fresh record as traders wait for US rate-path clues
Gold hit a fresh record amid growing optimism about the outlook for US monetary policy, as investors looked ahead to a key inflation print that may give policymakers room to lower rates. Silver extended gains to reach the highest in more than nine years. See the full Moneyweb.co.za article here>
European stocks slightly lower; Fed policymakers, inflation release in spotlight
European stocks slipped marginally lower Monday, starting the new week in a cautious manner ahead of the release of key U.S. inflation data in the wake of the rate cut by the U.S. Federal Reserve. Read the full article on Investing.com here>
Oil rises amid escalating tension in Europe and Middle East
Oil prices gained in Asian trade on Monday supported by geopolitical tension in Europe and the Middle East, though the prospect of more oil supply and concern about the effect of trade tariffs on global fuel demand weighed. Read the full BusinessDay article here>