Rand Holds Steady as Investors Await Ramaphosa's Policy Insights

The South African rand remained relatively unchanged as investors turned their attention to President Cyril Ramaphosa's national address, seeking insights into future economic and political policies. At 15h15, the rand traded at 18.54 against the dollar, close to its previous close. In his first State of the Nation Address under his coalition government, Ramaphosa provided clarity on economic reforms and his approach to addressing structural challenges.

On Thursday, the S&P 500 and Nasdaq rose by approximately 0.20%, while the Dow Jones trimmed early gains, falling around 90 points. Traders focused on corporate earnings and assessed President Trump's policies. Eli Lilly (NYSE:LLY) rose about 2.50% after beating earnings expectations, and Philip Morris (NYSE:PM) surged nearly 12% following strong revenue figures. In contrast, Qualcomm (NASDAQ:QCOM) dropped 4.40% amid concerns over a slowdown in smartphone demand, while Honeywell (NASDAQ:HON) fell 4.50% after announcing plans to split into three independent companies. Ford (NYSE:F) plunged 4.80% as the automaker forecast weaker growth, and Tesla (NASDAQ:TSLA) declined nearly 1.80%.

In the UK, the FTSE 100 surged over 1.50%, reaching new record highs, driven by positive investor reaction to the Bank of England's (BoE) interest rate cut and dovish outlook. The BoE lowered its benchmark rate by 25 basis points to 4.50%, marking its third rate cut since August. The Bank also reduced its growth forecasts, reflecting a more cautious stance on economic risks. AstraZeneca (LON:AZN) rose over 5% after posting a 19% revenue increase, driven by strong vaccine and cancer drug sales.

In the Eurozone, the STOXX 50 gained 0.40% and the STOXX 600 added 0.50%, marking a third consecutive day of gains, supported by strong corporate results. AstraZeneca's shares rose nearly 4% after beating earnings and revenue forecasts, while Societe Generale (EPA:SOGN) jumped about 7% following a rise in Q4 revenue and an optimistic outlook for the year. Maersk soared more than 6% after launching a $2 billion share buyback program.

In Asia, the Japanese Nikkei 225 Index rose 0.60% to 39 066, while the broader Topix Index gained 0.25% to 2 752, marking a third consecutive session of gains. This followed positive trends on Wall Street, as concerns over a global trade war eased amid cautious actions from the US and China. Nvidia (NASDAQ:NVDA) and other AI-related stocks rebounded from losses tied to the DeepSeek debacle.

Chinese stocks surged, with the Shanghai Composite jumping 1.30% to 3 271 and the Shenzhen Component rising 2.26% to 10 394, reaching their highest levels in over a month. This rally was driven by gains in AI and robotics stocks, spurred by excitement surrounding Chinese AI startup DeepSeek’s breakthrough, set to challenge Western AI leaders.

In commodities, oil prices fluctuated, with WTI crude trading around $71.4 per barrel after President Trump reiterated his commitment to lowering crude prices. Meanwhile, gold hovered at a record high of $2 860 per ounce, as expectations of lower interest rates increased the metal’s appeal as a safe haven amid economic and geopolitical risks.


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