PSG Cascades

09/06/2026

The SpaceX IPO, scheduled for Friday 12 June, is expected to price shares at $135 apiece, giving SpaceX a valuation of approximately $1.75 trillion.

The company is expected to trade under the symbol SPCX.

Public markets asked to price in advances in AI, Starlink and space-based computing long before lift-off

03/06/2026

AI optimism lifts markets despite ongoing US-Iran uncertainty
3 June 2026

US equities advanced to fresh record highs on Tuesday as continued strength in AI-related shares offset ongoing uncertainty surrounding US-Iran negotiations. The S&P 500, Nasdaq 100 and Dow Jones Industrial Average all recovered earlier losses, supported by strong gains across semiconductor and AI infrastructure companies. Broadcom rose 5% ahead of its earnings release, while Qualcomm, ON Semiconductor and Lam Research gained more than 5%. Hewlett Packard Enterprise surged 30% following an AI-driven guidance upgrade, while Marvell Technology jumped 20% after Nvidia CEO Jensen Huang suggested it could become the next trillion-dollar company.

Against this backdrop, the yield on the US 10-year Treasury note remained above 4.45% as stronger-than-expected economic data reinforced expectations of restrictive monetary policy. Job openings reached their highest level in more than a year, while manufacturing activity remained stronger than anticipated. Although oil prices eased from recent highs, uncertainty surrounding US-Iran negotiations continued to support expectations that interest rates could remain elevated for longer.

European equities also moved higher, with the Euro STOXX 50 gaining 1.20% and the STOXX Europe 600 rising 0.70%. Technology shares led the advance after SK Hynix announced plans to double wafer capacity, boosting sentiment across the semiconductor sector. ASML climbed 5%, Infineon gained 9.50% and STMicroelectronics surged 15% after raising its earnings target. Preliminary Eurozone inflation data showed headline inflation rose to 3.20%, while core inflation increased to 2.50%, reinforcing expectations of a European Central Bank rate hike next week.

Asian markets delivered a mixed performance. Chinese equities rebounded from one-month lows, supported by gains in AI-related shares, with the Shanghai Composite rising 0.43%. In contrast, Japan’s Nikkei 225 slipped 0.30% as investors weighed ongoing geopolitical uncertainty and expectations of further interest rate increases by the Bank of Japan.

Locally, the rand strengthened to around R16.20 against the US dollar, supported by firmer precious metal prices. South Africa’s RMB/BER Business Confidence Index declined to 39 in 2Q26, while the South African Reserve Bank reiterated its commitment to returning inflation to its 3% target following last week’s interest rate increase.

Commodity markets remained focused on developments in the Middle East. Brent crude traded around $95 a barrel and WTI around $92 as markets assessed conflicting signals regarding a potential US-Iran agreement. Gold recovered to above $4 500 per ounce, while silver climbed above $76. Platinum remained around $1 950 per ounce as elevated geopolitical uncertainty continued to support expectations of higher interest rates for longer.

27/05/2026

Markets mixed as geopolitics and AI drive divergence
27 May 2026

Brent crude slipped to around $98 per barrel on Tuesday, extending recent losses as markets balanced cautious optimism over a potential US–Iran agreement against persistent geopolitical risk in the Strait of Hormuz. Sentiment was guided by comments from US Secretary of State Marco Rubio, who cautioned that negotiations could still take several days, with unresolved issues including Iran’s frozen assets and guarantees over maritime passage through the key shipping corridor.

However, the diplomatic backdrop remained fragile. US military reports of self-defence strikes in southern Iran were met with claims from the Islamic Revolutionary Guard Corps that it had targeted an F-35 fighter jet and multiple drones following alleged airspace violations. Despite the escalation, regional actors including Saudi Arabia, Qatar and the UAE are reportedly pushing for continued diplomatic engagement with Washington, underscoring concerns that a broader conflict could disrupt energy flows through Hormuz.

Gold steadied near $4 500 an ounce after earlier weakness, as investors maintained a defensive stance amid uneven signals from both diplomacy and the battlefield, with safe-haven demand supported but not decisively extended.

In equities, US markets ended Tuesday mixed as investors refocused on Middle East developments alongside ongoing rate and earnings considerations. A tech-led bid persisted beneath the surface, with industrials and materials also firming, while energy and defensives lagged in line with softer oil prices. Micron Technology surged 19.30% after UBS raised its price target, pushing its market value above $1 trillion and reinforcing the ongoing AI-driven momentum trade. Alphabet, Broadcom and Tesla also advanced, while NVIDIA, Microsoft and Amazon eased lower. On the downside, Exxon Mobil fell 3.30% and Walmart declined 1.40%, reflecting sectoral rotation rather than broad risk aversion.

European equities, by contrast, closed weaker as investors scaled back optimism around US–Iran negotiations following renewed military strikes and rising volatility in energy markets. The STOXX 50 fell 1%, while the STOXX 600 slipped to 628 points, with sentiment pressured by higher energy prices and a rebound in sovereign bond yields after reports of US strikes on Iranian targets. Banks reversed recent gains, with Banco Santander, Deutsche Bank and UniCredit each declining between 1% and 2.40%, while technology also softened, led by a near 3% drop in ASML despite continued strength in global AI-linked demand. Ferrari was a notable underperformer, sliding more than 8% after unveiling its first fully electric vehicle.

Asian markets pushed higher to fresh record levels, extending Wall Street’s technology-led momentum. Japan and South Korea outperformed, supported by continued enthusiasm for artificial intelligence and semiconductors, while investors largely brushed aside geopolitical noise. The Nikkei 225 rose 1.30% to above 65 800, with the Topix up 0.30%, as risk appetite remained anchored in the global AI investment cycle despite lingering uncertainty in the Middle East.

South African equities, however, tracked a more subdued tone, closing mostly weaker as global risk sentiment wavered. The FTSE/JSE All Share Index edged down 0.05%, while the Top 40 slipped 0.10%, with the Industrial 25 leading losses with a 1.30% decline. The rand softened modestly in line with broader risk dynamics, with USD/ZAR at 16.39, GBP/ZAR at 22.04, and EUR/ZAR at 19.06, reflecting continued sensitivity to geopolitical developments and commodity price fluctuations.

24/05/2026

One of the worlds most prestigious financial magazines weighs in on crypto investing

24/05/2026

Chip stocks remain a key component of our offshore equity strategies. This clip highlights the top semi conductor stocks by profit margin, one of the key variables useful in evaluating the fundamental quality of a business.

Taiwan Semi Conductor (TSMC), Broadcom and ASML are current holdings.

22/05/2026

Oil volatility drives mixed global markets
22 May 2026

Brent crude ended a volatile session lower by more than 2% on Thursday after briefly surging as much as 3%, as markets whipsawed on shifting signals around US–Iran negotiations. Sentiment swung on comments from US Secretary of State Marco Rubio, who pointed to “some encouraging signs” of a potential agreement, alongside reports that Pakistani mediators may travel to Tehran as it reviews Washington’s latest proposal.

However, the tone remained fragile after earlier reports that Iran’s Supreme Leader had instructed that near-weapons-grade uranium should not be sent abroad, reinforcing Tehran’s hardline stance. Despite the pullback, oil remains roughly 50% above pre-conflict levels, with supply dynamics further complicated by a record US Strategic Petroleum Reserve withdrawal of nearly 10 million barrels last week. The intraday reversal in crude set the broader tone for global markets, driving alternating risk-on and risk-off moves across asset classes.

US equities ultimately settled higher after a choppy session, as easing geopolitical fears and the pullback in oil prices supported sentiment. The Dow Jones rose 276 points to a fresh record, while the S&P 500 added 0.20% and the Nasdaq gained 0.10%. Sentiment was buoyed by reports suggesting Iran saw the latest US proposal as narrowing differences, reinforcing hopes of a diplomatic path forward and helping extend oil’s recent decline, which in turn underpinned equity resilience.

In Europe, equities finished mixed as investors balanced geopolitical uncertainty against weakening regional growth signals. The STOXX 600 rose 0.20% while the STOXX 50 was broadly flat, with sentiment oscillating alongside crude oil’s volatility. Although earlier optimism around diplomacy had pressured oil lower, prices rebounded intraday before easing again, contributing to firmer sovereign yields and keeping inflation concerns in focus amid softer Eurozone data.

Chinese equities fell sharply, with the Shanghai Composite down 2.04% and the Shenzhen Component off 2.07%, as profit-taking hit technology stocks after the recent AI-led rally driven by strong NVIDIA earnings. The decline came despite intermittent geopolitical relief, including comments from US President Donald Trump that negotiations with Iran were in their “final stages,” which briefly eased inflation fears linked to energy markets. Separately, reports that Xi Jinping may visit North Korea as early as next week highlighted improving regional diplomatic alignment, though it did little to offset equity pressure.

South African equities edged lower, with the FTSE/JSE All Share Index down 0.51% to 114 053 points as investors locked in gains after global risk sentiment softened. Resource shares underperformed alongside stabilising commodity prices, weighing on counters such as Anglo American and Sibanye-Stillwater, while financials offered relative support with banks including Absa Group, Nedbank Group and Investec benefiting from steady valuation sentiment. The rand remained stable and 10-year bond yields hovered near 9%, leaving local equities sensitive to both global rate expectations and shifting risk appetite.

20/05/2026

Equities lower on rising rates and tech weakness
20 May 2026

US equities extended losses on Tuesday as rising Treasury yields—driven by renewed inflation concerns linked to Middle East tensions—kept sentiment under pressure. The S&P 500 and Nasdaq 100 fell 0.50%, while the Dow Jones dropped more than 400 points, with higher yields reinforcing a rotation away from growth and risk assets. Large-cap technology and semiconductor stocks continued to pull back after a strong run, as positioning normalised, with Seagate down roughly 10% week-to-date and Amazon, Tesla and Meta each falling up to 2%. Utilities provided partial offset, with names such as Dominion Energy extending gains and NextEra holding firmer after recent volatility.

The same macro backdrop shaped a more cautious tone in Europe, where equities ended mixed as markets balanced persistent inflation risks from elevated energy prices against broadly steady earnings. The Euro STOXX 50 finished flat at 5 851 points, while the STOXX 600 edged 0.20% higher to 611. Higher oil and gas prices continued to cloud the inflation outlook, while rising yields weighed on banks including UniCredit, BBVA and Intesa Sanpaolo, each down around 1%, leaving the region largely range-bound.

In contrast, Chinese equities outperformed as sentiment improved on easing geopolitical risk after reports that a planned US strike on Iran had been called off following Gulf intervention. The Shanghai Composite rose 0.93%, and the Shenzhen Component gained 0.26%, with technology stocks leading gains ahead of earnings from US chipmaker Nvidia. Sentiment was further supported by comments from Nvidia CEO Jensen Huang, indicating that China will allow imports of US AI processors. Focus now turns to China’s loan prime rate decision, expected to remain unchanged at 3% (1Y) and 3.50% (5Y).

South African equities ended mixed in line with broader global signals, with the FTSE/JSE All Share Index down 1.10% as resources lagged on higher oil prices and softer sentiment, while financials and select industrials provided support on earnings-related flows. The rand edged slightly firmer, supported by relatively attractive domestic yields, while local bonds remained underpinned by elevated interest rates despite global risk aversion.

Commodities traded mixed on Tuesday, with precious metals easing while energy remained elevated amid ongoing geopolitical uncertainty. Gold slipped below $4 500/oz as investors booked profits, while Brent crude remained elevated but eased slightly toward $110/bbl, staying supported by persistent supply-risk concerns in the Middle East.

19/05/2026

Global markets mixed as tech weakness, geopolitics and macro data drive divergence
19 May 2026

US stocks ended mixed on Monday as investors tracked developments in the Middle East and weighed prospects of a potential US-Iran deal. The S&P 500 slipped 0.10%, and the Nasdaq fell 0.50%, while the Dow Jones added 160 points, reflecting a split between cyclical strength and tech-sector weakness driven by chip-related pressure and select mega-cap losses. Technology was the weakest-performing sector after cautious commentary from Seagate CEO on industry capacity expansion weighed on sentiment across the semiconductor space. Seagate fell nearly 7%, and Micron dropped 6%, while Nvidia, Apple, Meta and Broadcom also closed lower. Tesla declined 2.90% amid concerns linked to the planned SpaceX IPO and potential competition for investor capital, according to Trading Economics.

European equities closed higher, recovering some ground as investors continued to assess macroeconomic headwinds and their implications for regional earnings. The Euro STOXX 50 rose to 5 832 points, while the STOXX 600 advanced 0.30% to 609, supported by selective strength in financials and corporate flows. Geopolitical uncertainty remained in focus, with US-Iran tensions and the Strait of Hormuz keeping energy prices elevated and sovereign yields firm. Financials led gains, with Allianz, Nordea, AXA and Munich Re all rising more than 1%, while Deutsche Börse surged 5% after reports that TCI increased its stake in the exchange operator. In contrast, ASML fell 3.20% amid broad weakness in AI-related infrastructure stocks.

Chinese equities edged lower on Monday as a series of weaker-than-expected data reinforced concerns over slowing economic momentum. New home prices fell 3.50% year-on-year in April 2026, fixed-asset investment declined 1.60% in January–April, retail sales rose just 0.20%—the weakest since December 2022—and industrial production slowed to 4.10%, its softest pace since July 2023. The urban unemployment rate eased to 5.20%. The data point to broad-based weakness, though raising expectations of eventual policy support ahead of the Politburo meeting in July.

South African markets were broadly steady, with the rand subdued in early trade as investors awaited domestic data and global cues. The FTSE/JSE All Share Index edged 0.32% higher on the day. Sentiment remained constrained by a firmer US dollar and higher oil prices, which capped risk appetite and left resource counters more sensitive than defensives.

Commodity prices were mixed, with energy leading the market and precious metals easing. Brent crude traded around $109.57 a barrel, while WTI was near $107 a barrel in midday trade, supported by geopolitical tensions and a firmer near-term risk premium. Bullion prices softened slightly, with COMEX gold around $4 538.70, as the dollar held firm and some investors trimmed exposure after the metal’s strong run. According to analysts, the broader commodities backdrop still looks constructive, but gains remain uneven across asset classes rather than broad-based.

13/05/2026

Markets fall as US inflation beats forecasts
13 May 2026

US equities fell from record highs on Tuesday after April inflation data reinforced expectations that the Federal Reserve (Fed) will keep interest rates elevated for longer. The S&P 500 and Dow Jones each declined around 1%, while the Nasdaq dropped 2% as hotter-than-expected inflation and rising energy costs weighed on sentiment.

US annual inflation accelerated to 3.80% in April 2026, up from 3.30% in March and above forecasts of 3.70%, marking the highest level since May 2023. The increase was driven by energy prices, which surged 17.90%, with gasoline rising 28.40% and fuel oil jumping 54.30%. Core inflation rose to 2.80%, its highest since September and above expectations of 2.70%, while monthly core prices increased 0.40%.

Technology stocks were broadly weaker, with Nvidia, Tesla, Amazon and Alphabet all down more than 1%, while Broadcom and AMD fell around 2%. Hims & Hers dropped 15% after missing earnings expectations. The US 10-year Treasury yield remained above 4.40%, reflecting persistent inflation pressures and geopolitical risk, with markets expecting the Fed to hold rates steady through the year.

European equities closed sharply lower as energy-driven inflation concerns intensified. The Eurozone STOXX 50 fell 1.40% to 5 815 and the STOXX 600 dropped 1.10% to 606. Banks and insurers led losses, with Santander, BNP Paribas and ING down around 2.30%, while Munich Re fell 6.30% after earnings. Siemens Energy declined 5.70%, while Prosus and ASML dropped 5.80% and 3.10%, respectively. The FTSE 100 slipped 0.20%, with banks falling between 1% and 4% and Vodafone dropping over 7%, though Shell and BP rose on elevated oil prices.

Asian markets ended mixed, with the Hang Seng Index down 0.20% to 26 347 as Tencent, Pop Mart and Xiaomi declined. Japan’s leading economic index rose to 114.5 points in March 2026, its highest since April 2022, though unemployment increased to 2.70% and consumer confidence weakened.

South Africa’s unemployment rate rose to 32.70% in 1Q26, with employment falling by 345 000 and broader labour underutilisation rising to 46.30%.

Commodities were mixed. Brent crude rose above $107 per barrel on Middle East supply fears, while gold fell below $4 690 per ounce amid US dollar strength. Silver declined more than 2%, whereas platinum rose above $2 100 per ounce due to structural supply constraints.

12/05/2026

Markets volatile as energy and geopolitical risks persist
12 May 2026

European stocks closed mixed on Monday as investors monitored ongoing tensions in the Middle East and their implications for inflation, energy supply and monetary policy expectations. The Eurozone’s STOXX 50 fell 0.30% to 5 895, while the pan-European STOXX 600 ended broadly flat at 612. Luxury and consumer discretionary names led declines, with LVMH falling more than 4%, while Hermes and L’Oréal dropped around 3%. In contrast, Schneider Electric gained 2.30% and Siemens rose 1.40% ahead of its earnings release later this week. London’s FTSE 100 edged higher, supported by gains in heavyweight energy shares as Brent crude climbed back above $103 per barrel. Shell and BP added 0.70% and 1%, respectively, while Compass rose more than 2% after raising full-year profit guidance. International Airlines Group also advanced about 5.50% following stronger first-quarter results.

US equity indices were mixed, with the S&P 500, Nasdaq 100 and Dow Jones hovering near the flatline as markets weighed the economic impact of elevated oil prices and the sustainability of the artificial intelligence (AI) rally. Reuters reported that President Donald Trump rejected Iran’s latest peace counterproposal as “totally unacceptable”, prolonging disruptions to shipping flows through the Persian Gulf. Despite higher energy prices and rising bond yields, equities remained close to record highs following the recent earnings-driven rally. AI hyperscalers weakened, with Meta, Tesla and Microsoft falling, while chipmakers including AMD, Nvidia and Broadcom advanced. Moderna and Pfizer also gained amid concerns over a Hantavirus outbreak.

Asian markets were supported by stronger Chinese data and expectations surrounding a meeting later this week between President Trump and Chinese President Xi Jinping. China’s annual inflation rate accelerated to 1.20% in April, exceeding expectations, while exports surged 14.10% year-on-year to a record high. China’s 10-year government bond yield eased to around 1.76%, while Japan’s 10-year yield climbed to roughly 2.49% as higher oil prices intensified inflation concerns. Minutes from the Bank of Japan’s March meeting showed policymakers see scope for further rate hikes should energy-related inflation pressures persist.

South African markets remained sensitive to both domestic political developments and global energy risks. The rand strengthened toward 16.3 against the US dollar, supported by firmer precious metal prices and a broadly stable dollar. South African Reserve Bank Governor Lesetja Kganyago said the central bank is keeping its options open on interest rates as Middle East tensions and elevated oil prices continue to pose inflation risks. Meanwhile, South Africa’s 10-year bond yield rose toward 8.69% amid renewed political uncertainty following the Constitutional Court ruling related to the 2022 Phala Phala scandal.

Commodities extended gains as ongoing disruptions in the Strait of Hormuz continued to tighten global supply conditions. Brent crude rose above $103 per barrel after President Trump rejected Iran’s latest response to US peace proposals, while gold climbed toward $4 730 per ounce and silver surged more than 6% to near two-month highs. Copper futures also reached record levels above $6.4 per pound as supply disruptions and continued AI-related infrastructure demand supported prices.