Rand holds steady, supported by stronger gold prices

The rand held steady on Thursday, supported by stronger gold prices as investors sought the safe-haven metal following the implementation of steep US tariffs by President Donald Trump. By 18h00, the local currency traded at R17.78 against the dollar, little changed from Wednesday’s close. US imports from South Africa now face a 30% duty—the highest among Sub-Saharan African nations—but the currency remained resilient, aided by the country’s position as a key precious metals producer. The JSE’s Top 40 index gained 0.60%, lifted in part by gold miners, while gold prices climbed to a more than two-week high.

Renewed trade tensions erased early market gains on Thursday, leaving the S&P 500 down nearly 0.10% and the Dow off 224 points. The Nasdaq 100 eked out a 0.30% rise, supported early on by semiconductor stocks after Trump announced a 100% tariff on imported chips, excluding US-based manufacturers. That optimism faded as broader trade concerns took hold. Adding to the market’s focus, reports surfaced that Fed Governor Christopher Waller could be Trump’s choice to lead the Federal Reserve, reinforcing expectations for a September rate cut. On the corporate front, Trading Economics reported that: “Eli Lilly shares tumbled 14.10% after disappointing results from an obesity drug trial, while Intel fell 3.10% following Trump’s call for the company’s CEO to resign—both moves adding to the market’s decline. Apple shares bucked the trend, rising 3.20% after the company announced a $100 billion US investment plan, adding to prior commitments.”

European stocks closed higher on Thursday, with the STOXX 50 up 1.40% and the STOXX 600 gaining 1%, driven by strong performances in the travel and leisure, as well as pharmaceutical sectors. Sentiment improved on the back of solid corporate earnings and renewed optimism for progress in resolving the Ukraine–Russia conflict. On the corporate front, Trading Economics reported that: “Maersk rallied 5.10% after the Danish shipping group posted stronger-than-expected second-quarter operating profit. Allianz gained 4.10% following an earnings beat, Siemens rebounded over 4%, and Henkel rose 3.40% after lifting its profit forecast.”

Mainland Chinese stocks ended mixed on Thursday, with the Shanghai Composite edging up 0.16% to 3 640 points, while the Shenzhen Component slipped 0.18% to 11 158. Investors weighed stronger-than-expected trade data against renewed geopolitical tensions. July exports surged past forecasts as companies rushed shipments ahead of the August US tariff deadline, while imports hit their highest level in a year, pointing to improving domestic demand. Meanwhile, Hong Kong stocks slipped 0.60% to 24 936 in early trade, ending a four-day winning streak as broad-based losses took hold. Investors turned cautious ahead of China’s July CPI and PPI data due Saturday, with expectations for a slight decline in consumer prices and continued producer deflation amid lingering trade risks.