JSE strengthens ahead of GDP data

The South African rand strengthened on Monday as investors looked ahead to local GDP figures for insight into the health of the country’s economy. By 21h11, the rand traded at R17.47 against the dollar, up by 1.30%. The JSE Top 40 index also closed 1.30% higher.

In the US, stocks mostly moved higher as investors awaited a string of economic data releases, including two key inflation reports that could shape the Federal Reserve’s next policy decision. The S&P 500 added 0.20%, while the Nasdaq 100 rose 0.50%, nearing record levels last seen in August 2025, supported by gains in technology and semiconductor shares. The Dow Jones finished little changed. Following a softer-than-expected August jobs report, markets are increasingly factoring in the chance of a larger 50 bps rate cut by the Fed in September. Attention this week will turn to PPI and CPI data for further clues on the economic outlook. Tech stocks led the advance, with Amazon up 1.40%, Broadcom 3.10% higher, Nvidia gaining 0.70%, and Oracle rising 2.50%. 

European markets closed higher, with the STOXX 50 adding 0.90% to 5 367 and the STOXX 600 rising 0.60% to 553. Banks surged as narrowing Eurozone yield spreads eased concerns about fragmentation. However, political risk resurfaced as French Prime Minister François Bayrou is expected to lose a confidence vote, after the government rejected the current budget proposal, raising the likelihood of wider deficits. Among individual movers, ASML climbed 2.50% in the global semiconductor sector, after confirming it will take the largest stake in Mistral AI. Industrial names also advanced, with Siemens, Airbus, and Schneider Electric all adding around 2%.

In Asia, Hong Kong’s Hang Seng Index gained 0.90% to 25 634, lifted by stronger Wall Street futures and optimism over China’s economy after forex reserves reached their highest level since 2015. The central bank also reportedly boosted gold reserves. However, weaker trade data highlighted ongoing external risks and muted domestic demand.

On the commodities front, WTI crude rebounded 2% above $63 per barrel, supported by a smaller-than-expected OPEC+ output hike and concerns over potential new US sanctions on Russian oil. The alliance agreed to raise production by 137 000 bpd from October, significantly below previous months’ increases.