JSE Rallied Boosted by Resource-Linked Sectors

TheFTSE/JSE All Share Index advanced roughly 0.50% on Monday, marking a fresh record high and extending its winning streak to five consecutive sessions. Gains were led by resource-linked sectors, particularly gold miners, as investors sought safe-haven assets in response to heightened trade war concerns following Trump’s latest tariff announcement. Additionally, traders closely monitored US-South Africa relations after Trump signed an executive order on Friday to cut US aid to South Africa, citing concerns over an expropriation law signed by President Cyril Ramaphosa aimed at addressing historical land inequalities. The rand traded at R18.46/$ at 21h00 local time.

US stocks started the week on a positive note, with the S&P 500 climbing 0.60%, the Nasdaq gaining 1.10%, and the Dow Jones rising approximately 70 points. Investors were digesting new tariff measures while anticipating key economic data and Federal Reserve Chair Jerome Powell’s testimony before Congress. President Trump announced plans to impose a 25% tariff on all steel and aluminum imports into the US, with additional reciprocal tariffs expected to be unveiled later in the week.

In Europe, stocks closed significantly higher on Monday, continuing last week’s gains amid growing sentiment that European equities offer more attractive valuations than their US counterparts. Despite fresh tariff threats from the US, the Eurozone’s STOXX 50 advanced 0.70%, reaching a near 25-year high, while the STOXX 600 also climbed 0.70% to a record 546 points. The FTSE 100 gained over 0.50%, hitting an all-time high of 8 749 points, boosted by a 7.30% surge in BP (LON:BP) shares following reports that activist investor Elliott Management had taken a stake in the company to address its underperformance.

Asian markets also saw strong performance. The Hang Seng surged 1.80% to close at 21 522 points, its highest level since early October, driven by broad sector gains. Market sentiment improved as concerns over China’s deflation eased, following data showing that consumer inflation reached a five-month high due to strong holiday spending. Additionally, fears of a trade dispute between China and the US softened, with many investors viewing US tariff threats as negotiation tactics. Meanwhile, Japan’s Nikkei edged up 0.04% to 38 801, as global sentiment remained cautious due to looming US tariff risks.

In the commodities market, WTI crude oil futures extended their rally, surpassing $71 per barrel on Monday. The gains were fuelled by supply concerns following new US sanctions on Iran’s crude exports. The US Treasury imposed sanctions last week targeting individuals and tankers involved in transporting millions of barrels of Iranian oil to China, intensifying pressure on Tehran.


Read full report