Rand holds steady as gold gains amid global trade tensions

The South African rand traded within a narrow range on Thursday, supported primarily by stronger gold prices as investors favoured the safe-haven asset amid persistent trade tensions between Beijing and Washington. By 14h20 GMT, the rand stood at R17.3125 against the US dollar, little changed from Wednesday’s close. On the Johannesburg Stock Exchange, the Top-40 index was last up 1%, led largely by gains in gold mining stocks. Meanwhile, South Africa’s benchmark 2035 government bond strengthened slightly, with the yield declining by 3 basis points to 9.015%.

In the United States, equity markets lost early momentum, with the S&P 500 down 0.20%, the Nasdaq off by 0.10%, and the Dow Jones falling over 100 points, as geopolitical concerns and renewed banking sector anxiety overshadowed optimism from corporate earnings and AI-linked companies. Regional banks weighed heavily on sentiment: Zions Bancorp reported a $50 million charge-off and dropped as much as 6.40%, while Western Alliance Bancorp fell 11% after a borrower failed to provide collateral. Movements among major tech and AI shares were mixed; Apple slipped 0.90%, Meta dropped 0.50%, and Tesla lost more than 1%, while Nvidia gained 0.80%, Amazon 0.20%, and Alphabet 0.90%.

In the UK, the FTSE 100 ended broadly flat at around 9 440 points, as investors processed a blend of economic data and company results. Figures from the Office for National Statistics showed GDP growth of just 0.10% in August, following a similar contraction in July, with manufacturing acting as the main driver. However, the UK’s trade deficit widened to £21.2 billion, the largest since January 2022, amid falling exports to both the EU and the United States.

European markets advanced, with the Stoxx 50 gaining 0.90% and the Stoxx 600 up 0.60%, bolstered by strong performance in the food and beverage sector. The sector index rose 3.20% after Nestlé announced plans to cut 12 000 white-collar jobs, with an additional 4 000 expected over the next two years. German life sciences group Sartorius jumped 9% after reporting a 7.50% increase in revenue and improved profitability over the first nine months of 2025.

In Asia, Japan’s Nikkei 225 rose by 1.27% to close at 48 278, while the broader Topix index added 0.62% to 3 203. Japanese equities extended gains for a second day, buoyed by robust earnings despite lingering political uncertainty. The ruling Liberal Democratic Party proposed a vote for a new prime minister on 21 October, though opposition parties have yet to confirm agreement, keeping the leadership outlook uncertain for LDP candidate Sanae Takaichi.

In China, the Shanghai Composite edged up by 0.10% to 3 916, while the Shenzhen Component declined by 0.25% to 13 086, as caution persisted amid rising US-China trade tensions. President Donald Trump confirmed the trade war with China remains active, although US Treasury Secretary Bessent indicated the current truce could be extended beyond the three-month mark if Beijing delays implementing new export restrictions on rare earth minerals.

In commodities, WTI crude oil futures fell to $58.40 per barrel - its lowest level since May - after an unexpected increase in US crude stockpiles and uncertainty around India’s demand for Russian oil. Gold prices continued their upward surge, climbing above $4 230 per ounce to a new record high, driven by safe-haven demand and growing market expectations of a more accommodative stance from the US Federal Reserve.