The local bourse channelled firmer global counters on Monday, as markets staged a recovery after better-than-expected US jobs data convinced investors to defer forecasts for when the first US interest rate cut would occur. The FTSE/JSE All Share index gained 0.75% to 75 334 points, with Sasol (JO:SOLJ) leading the gains after the petrochemical giant won an appeal over how sulphur dioxide emissions are measured at its Secunda plant. Following the announcement, Business Day reported that Sasol's share price surged by more than 6% on Monday, eliminating some regulatory uncertainty surrounding the company's activities. At 18h00, the rand had strengthened 0.23% to R18.62/$ and 0.20% to R20.19/€, while it was little changed at R23.55/£.
European stocks rose on Monday driven by cyclicals, following the release of better-than-expected industrial production data from Germany, although analysts struck a cautious note ahead of this week's European Central Bank (ECB) policy decision. With traders widely expecting the central bank to keep rates unchanged, they will scour for any hints that a first rate cut of 25 basis points could be delivered in June. “The surprise rise in industrial activity gives hope that the German economy did not contract again in (the) first quarter. However, a sustained recovery is not likely to set in until the second half of the year. This is also likely to be moderate, as it will receive little support from monetary policy and will be held back by the numerous structural problems," one Commerzbank (ETR:CBKG) economist told Reuters. The STOXX 600 index rose 0.50%, with Germany's DAX marginally outperforming most of its regional counterparts with a 0.80% gain.
Wall Street closed flat on Monday as investors braced for an eventful week that includes key inflation data and the start of the first-quarter earnings season. All three major averages flatlined, with the S&P 500 and Dow Jones scaling back 0.03% and 0.04%, respectively, while the Nasdaq Composite inched up 0.03%. Market participants will pay special attention to the release of inflation and producer prices data, consumer sentiment, and the Federal Open Market Committee (FOMC) meeting for clues on the timing of potential interest rate cuts this year.
Hong Kong stocks climbed, boosted by a statement from top government official John Lee on Monday that the government was considering other measures to help the securities market in the financial hub, including enhancing the listing procedure for specialised technology firms. Sentiment has also improved recently following US Treasury Secretary Yellen's visit to China in the previous week, while market participants await key data from mainland China throughout the week. Elsewhere, the Nikkei rose 0.90% as Japanese markets climbed for the second straight session, aided by a recovery in tech firms. Investors also assessed domestic consumer confidence data for a better understanding of the economy’s health.
Gold prices extended their record spike on Monday, aided by speculative buying and ongoing Middle East tensions, which dimmed robust US employment growth recorded last month. Spot gold was up 0.13% at $2 343.89/oz at 18h30, after hitting a record high of $2 353.79 earlier in the session. Brent crude was 1.08% weaker at $89.57 a barrel as the latest ceasefire negotiations between Israel and Hamas in Egypt yielded no progress.
