JSE rises on rand strength and global market optimism

The local market continued to demonstrate resilience in the face of global volatility, supported by both domestic developments and improved global sentiment. Equities maintained positive momentum, extending a recent rally as the JSE All Share index rose 0.60% on Thursday.

Global markets advanced as geopolitical tensions eased and risk sentiment improved. US equities led gains with major indices rallying after investors cheered President Donald Trump’s announcement that previously threatened tariffs on several European countries would not be implemented, effectively reducing fears of a transatlantic trade dispute. US benchmarks saw the Dow Jones Industrial Average rise by roughly 0.90%, the S&P 500 by about 0.74% and the Nasdaq by more than 1%, marking a broad rebound from earlier volatility.

Key US movers: tech leaders shone with Meta surging 5.70%, Microsoft added 1.50%, with Amazon gaining 1.30% and Alphabet 0.80%, while Nvidia and Apple increased by 0.80% and 0.30%, respectively. Notable outliers included GE, which fell 7.40%, despite better earnings forecasts and Procter & Gamble up 2.70%, even after a revenue shortfall.

European markets also climbed, with key benchmarks such as Germany’s DAX and France’s CAC 40 posting solid gains, while the STOXX 600 ended higher by over 1% as sentiment improved across sectors. 

Positive momentum extended across regions, with Asian markets mostly higher amid reduced geopolitical risks. President Trump’s World Economic Forum remarks – ruling out military action in Greenland and dropping proposed European tariffs – eased trade tension fears that had fuelled prior volatility. Meanwhile, the People’s Bank of China will maintain a moderately loose policy in 2026, deploying RRR cuts and rate reductions to ensure ample liquidity, support stable growth, and foster price recovery, per Governor Pan Gongsheng.

Meanwhile, the People’s Bank of China plans a moderately loose stance in 2026, using RRR cuts and rate easing to secure liquidity, steady growth, and moderate price gains, according to Governor Pan Gongsheng. Japan’s Nikkei rose 1.73%, while Hong Kong’s Hang Seng edged up 0.06%. 

Commodity markets displayed mixed signals. Precious metals retreated from recent highs as safe haven demand eased, with spot gold falling around 1% and silver pulling back. However, base metals and energy commodities stabilised.