Rand firms as global sentiment improves

The South African rand strengthened on Friday, supported by growing optimism over easing US-China trade tensions and stronger-than-expected US jobs data, which lifted global risk appetite. These gains were achieved despite the release of yet another weak local Purchasing Managers' Index (PMI), highlighting continued pressure on South Africa’s manufacturing sector—the largest on the continent. By 14:40 GMT, the rand was trading at 18.35 to the US dollar, up approximately 1% from Thursday’s close. Meanwhile, the Johannesburg Stock Exchange’s All-Share Index was last seen 1% higher, while the benchmark 2030 government bond remained largely unchanged.

US stocks rallied on Friday, lifted by a stronger-than-expected jobs report and renewed signs of easing trade tensions between the United States and China, which helped restore investor confidence. The S&P 500 climbed nearly 1.50%, marking its ninth consecutive gain—the longest winning streak in two decades. The Dow Jones Industrial Average surged 563 points, also recording its ninth straight advance, while the Nasdaq gained 1.50%. April’s nonfarm payrolls increased by 177 000, surpassing expectations and reinforcing optimism around the resilience of the US labour market, despite continued uncertainty surrounding tariffs.

In the United Kingdom, the FTSE 100 extended its upward momentum, closing 1.20% higher at 8 596 on Friday. This marked the index’s 15th consecutive day of gains—a new record for its longest streak of daily advances. The rally reflected broader global sentiment, as markets took comfort from the robust US employment data, which eased concerns over a potential recession in the world’s largest economy. Optimism surrounding US-China trade relations and solid corporate earnings further buoyed investor sentiment.

Across Europe, equity markets also ended the week on a high. The Stoxx 50 rose 1.90%, while the Stoxx 600 gained 1.70%, driven by a strong performance in the technology sector, which rallied 3%. London’s FTSE 100 echoed this positive tone, rising over 1% and cementing its record-breaking streak. Energy giant Shell added 1.90% after surpassing first-quarter profit forecasts and announcing a $3.5 billion share buyback programme.

In Asia, Japanese equities advanced, with the Nikkei 225 rising 1.04% to close at 36 830 and the broader Topix Index up 0.31% at 2 688. Both indices reached their highest levels in over a month, buoyed by optimism over global trade developments. China signalled a renewed willingness to engage in trade talks with the US following several diplomatic overtures from Washington. Meanwhile, Japan concluded a second round of bilateral trade negotiations with the US, with Tokyo aiming to finalise a deal by June.

In commodities markets, WTI crude oil futures fell 1.60% to settle at $58.29 per barrel, registering their largest weekly decline since late March. The drop came as traders adopted a cautious stance ahead of the rescheduled OPEC+ meeting on Saturday, where production targets for June will be under discussion. Gold hovered around $3 250 per ounce, on track for its worst weekly performance in over two months, as improving trade sentiment reduced demand for traditional safe-haven assets.