PSG Cascades

02/09/2026

US equities retreat as September gets off to a cautious start
2 September 2026

US equities ended September’s first trading session on a softer note on Tuesday, as rising bond yields and higher oil prices weighed on investor sentiment. The S&P 500 fell 0.70%, while the Dow declined by 419 points and the Nasdaq 100 dropped 1.30%. The cautious tone reflected both seasonal headwinds – September has historically been one of the weaker months for stocks – and a shift in the macro backdrop, with expectations for near-term interest-rate cuts fading and renewed Middle East tensions rising.

US Treasury yields climbed to their highest levels in several months as investors priced in the prospect of higher-for-longer rates alongside increased government borrowing. Technology shares were among the weaker performers, with Micron falling 2.60% and AMD declining 2.40%. Oracle and Palo Alto Networks each lost 5.20%, while Dell dropped 6.80%. Broadcom slipped 0.42% ahead of its results, while the broader market digested the combined impact of elevated yields, firmer oil prices and ongoing geopolitical uncertainty.

According to Reuters, renewed US strikes on Iranian targets have intensified concerns around energy supplies, pushing crude prices higher and complicating the inflation outlook. Crude oil futures rose to around $90.50 a barrel on Tuesday, marking their highest level in more than a month, while Brent futures climbed 4.30% to more than $94 a barrel, also reaching a one-month high. Escalating hostilities between the US and Iran have heightened the risk of prolonged disruption to exports through the Strait of Hormuz, keeping a firm bid under energy markets.

Major economies have also been drawing on their oil reserves to offset higher import costs, with the US Strategic Petroleum Reserve falling below 290 million barrels, its lowest level since 1982. Meanwhile, China has cut both crude imports and refinery activity, suggesting softer demand for crude despite relatively steady demand for refined products. In other commodities, precious metals dropped with gold 5.68% lower trading at $4 340.75 per ounce and silver declining 3.04%.

European equities came under further pressure on Tuesday, marking a second consecutive session of declines as investors remained concerned that tighter financial conditions could weigh on economic growth. The Euro STOXX 50 fell 0.90% to 6 365, while the STOXX Europe 600 declined 0.60% to 647. The FTSE 100 also slipped 0.40%, although it outperformed its European peers. With energy costs already contributing to a rise in eurozone headline inflation, markets are increasingly pricing in the possibility of the European Central Bank factoring in a rate hike this month.

Technology stocks were among the weakest performers, with SAP, Prosus and Adyen falling between 2.60% and 4%. Industrial shares also came under pressure, with Siemens, Schneider Electric and Rheinmetall each losing around 2.50%. Novartis was a notable exception, jumping 6.30% after announcing positive results from two late-stage trials of its experimental treatment for multiple sclerosis.

Asian markets ended the day’s session on a mixed note, as investors remained cautious amid rising global bond yields and global geopolitical tensions. Japan’s benchmark 10-year government bond yield rose to 3% for the first time in 30 years, reflecting growing concerns about inflation and the outlook for interest rates.

In mainland China, the Shanghai Composite edged 0.09% lower, although stronger-than-expected factory activity helped limit the decline. Meanwhile, Premier Li Qiang indicated that US companies are welcome to expand their presence in China, while calling for both countries to address each other’s concerns. The Nikkei 225 slipped 0.15%, with weakness in semiconductor and growth stocks weighing on the index. In Hong Kong, the Hang Seng fell 0.88%, dragged lower by technology and property stocks, while global e-commerce fashion platform, Shein’s subdued market debut also dampened sentiment.

The South African rand weakened on Tuesday after the latest purchasing managers’ index (PMI) survey pointed to a further deterioration in manufacturing conditions. The rand traded at R16.16 against the US dollar, around 0.33% weaker, at 20h19 SAST. The seasonally adjusted Absa PMI fell to 45.8 points in August from 46.8 in July, marking its fourth consecutive monthly decline and its weakest reading so far this year. The survey also showed a sharp slowdown in business activity.

Meanwhile, rising diesel costs are likely to keep pressure on manufacturers’ input costs, with another price increase expected during September. The weaker economic backdrop also weighed on the Johannesburg Stock Exchange (JSE), with indices closing in the red. The All Share Index decline 0.35% at 115 855.50, while Financials ended 0.53% lower.

01/09/2026

Shoprite is spending some money…

Africa's largest retailer, Shoprite, with more than R250bn in annual sales, is set to add about 400 coffee and quick-service restaurant shops to its network as it expands beyond supermarkets through a proposed takeover of Vida e Caffè.

🔗Link in comments.

27/08/2026

Global markets mixed as oil prices ease and AI concerns persist
27 August 2026

Global markets were mixed on Wednesday as investors awaited Nvidia’s earnings report for further clues on the strength of artificial intelligence (AI)-related demand and capital spending by hyperscalers. Lower oil prices also eased near-term inflation concerns, while investors continued to assess the outlook for US monetary policy and fiscal reform.

US equities closed mixed on Wednesday. The S&P 500 was broadly unchanged, the Nasdaq 100 edged higher, while the Dow Jones Industrial Average shed 113 points. Technology stocks mostly advanced, with Microsoft gaining 0.90%, Meta rising 1.10%, Micron adding 0.60% and AMD increasing 0.40%. Nvidia fell 1.60% ahead of its results, with forecasts pointing to almost doubled year-on-year revenue. Intuit declined 3.20% after its outlook fell short of the higher end of market expectations, while higher-than-expected PCE readings and resilient consumer spending reinforced expectations for a restrictive Federal Reserve.

According to Reuters European shares were muted on Wednesday, as investors assessed talks involving Iran and Oman over the Strait of Hormuz, while ‌sticky US inflation data marginally increased expectations of a Federal Reserve rate hike next month. The pan-European STOXX 600 closed 0.01% lower at 656.41 points, while EURO STOXX 50 Index advanced 0.23% to 6470.74. Germany’s DAX 40 rose 0.08% to 26 286, while France’s CAC 40 gained 0.27% to 8 462. London’s FTSE 100 was little changed as its six-session winning streak ended, with weaker energy shares offsetting gains elsewhere. Investors continued to monitor the impact of AI spending on technology companies and developments around energy prices and inflation.

Asian markets closed higher. China’s Shanghai Composite gained 0.59%, while the Shenzhen Component rose 0.69% as investors awaited further policy signals from the National People’s Congress Standing Committee meeting. Japan’s Nikkei 225 advanced 0.62% to 66 262, supported by gains in technology shares ahead of Nvidia’s results.

South African equities ended marginally lower on Wednesday. The FTSE/JSE All Share Index declined 0.01% to 116 813.45 points, while the Top 40 Index fell 0.04%. Financials lost 0.10%, while Resources declined 0.31% and Metals and Mining fell 0.27%. The rand weakened 0.22% against the US dollar to R15.96 and 0.05% against the euro to R18.60, while strengthening 0.13% against the British pound to R21.71.

Commodity markets were weaker. Brent crude oil declined 1.30% to $87.43 per barrel as investors continued to assess developments around energy flows and tensions in the Middle East. Gold fell 1.33% to $4 594.68 per ounce, while silver declined 0.76% to $68.12 per ounce and platinum fell 1.07% to $1 841.65 per ounce.

24/08/2026

Markets rebound as US yields and policy outlook remain in focus
24 August 2026

US shares managed a modest Friday rebound, trimming the week’s losses as fresher economic data eased some near-term concerns. The S&P 500 edged up 0.40%, the Nasdaq 100 gained 0.30% and the Dow added 518 points, helped by a report showing US business activity expanding at its quickest pace since 2022. Even so, investors remained cautious after a sharp rise in long-dated Treasury yields, driven by inflation concerns, heavy debt issuance and fiscal worries. Long-term US yields climbed after Fed Chair Kevin Warsh suggested a rate hike may not be his preference for curbing inflation, heightening the focus on the upcoming Jackson Hole speeches.

Hyperscalers advanced, with Alphabet increasing by 1.10%, Microsoft gaining 0.40% and Meta rising 0.80%. Chipmakers traded mixed: Nvidia fell 1%, Micron lost 0.80% and Intel retreated 2.20%. Walmart slid more than 10% over the week after an uncommon earnings miss dented its outlook and sparked concerns about US consumer resilience amid higher fuel prices and tighter budgets.

European markets ended the week strongly, due to gains in the big banks and in the luxury stocks, even though the main indexes still experienced losses for the week. The Euro STOXX 50 increased by 0.60% to 6 458 and the STOXX Europe 600 rose by 0.50% to 653. The recovery was helped by banking shares, with Santander advancing by 2.70%, with BNP Paribas, Deutsche Bank, BBVA, and Nordea each gaining more than 1%. The sector had experienced greater volatility earlier in the week because comments from the US Treasury about possible intervention in bond markets had increased the uncertainty surrounding benchmark borrowing costs. Luxury shares also provided support, with LVMH, Adidas, Hermès and Ferrari rising between 1.50% and 2.30%.

However, despite Friday’s positive session, the Euro STOXX 50 ended the week 1.30% lower, while the STOXX Europe 600 declined 0.60%. In the UK, the FTSE 100 rose 0.60% on Friday, extending its winning streak to six sessions and ending the week with a gain.

Asian markets closed mixed on Friday, capping a largely weaker week as persistent pressure from rising global bond yields and oil prices at one-month highs, driven by tensions in the Persian Gulf, weighed on sentiment. Japan’s Nikkei 225 fell 0.30% to close at 66 016.36, pressured by higher US and domestic bond yields, as well as concerns over rising import costs linked to elevated crude oil prices. Hong Kong’s Hang Seng Index gained 1.21% to finish at around 26 009.46, supported by strength in basic materials shares and positive corporate earnings. Meanwhile, mainland China’s Shanghai Composite edged 0.04% higher to close at 3 905.20, as investors assessed fresh policy signals from Beijing.

South African markets closed sharply higher on Friday, supported by a surge in gold prices, a weaker US dollar and improved sentiment towards emerging markets following the US Treasury’s announcement of a bond buyback. The FTSE/JSE All Share Index gained 1.81% to close at 117 747.80, while the FTSE/JSE Top 40 Index advanced 2.07% to 110 387.07. Resource and mining shares were among the strongest performers, providing significant support to the market throughout the trading session. The rand strengthened 0.68% against the US dollar to trade at R16.01.

Crude oil remained broadly unchanged trading at around $94 a barrel on Friday as investors weighed conflicting signals surrounding the conflict between Iran and the US. Hopes that Iran may be seeking an end to the war offered some relief, although the prospect of tougher US sanctions kept geopolitical risks elevated. Despite Friday’s muted trading, oil gained more than 5% for the second consecutive week. Gold, meanwhile, climbed above $4 600 an ounce, its highest level since mid-May, extending its weekly gain to around 5%.

24/08/2026

Register for the upcoming PSG Think Big Webinar

18/08/2026

Markets mixed as oil rises and AI optimism persists
18 August 2026

US equities ended the day weighed down by higher oil prices and renewed Middle East tensions following the expiration of the US-Iran memorandum of understanding. The Dow Jones Industrial Average fell 273 points, the S&P 500 declined 0.50% and the Nasdaq Composite edged down 0.20%, as gains in parts of the technology sector helped limit broader losses.

Investors are now turning their attention to upcoming results from major US retailers, which should offer a clearer read on the resilience of consumer spending. Meanwhile, oil prices moved higher as the US and Iran appeared no closer to reaching an agreement, adding to concerns about inflation and the outlook for interest rates.

Technology stocks remained volatile as investors continued to assess whether substantial investment in artificial intelligence (AI) will translate into durable earnings growth. Semiconductors outperformed, with the PHLX Semiconductor Index rising almost 2%, while the Software and Services segment lagged. A stronger revenue outlook from AI company Anthropic also supported demand for memory and data-storage stocks. Micron rose 4.10%, while Intel gained 1%. Sandisk also advanced strongly, climbing 9%. Nvidia was the sole Magnificent Seven stock to finish higher, with investors already looking ahead to the chipmaker's results next week.

In Europe, equities closed lower on Monday as renewed geopolitical tensions, higher energy prices, weaker renewable power generation in parts of central Europe, and rising bond yields also weighed on investor sentiment. The Euro STOXX 50 slipped 0.10% to 6 530, the STOXX Europe 600 declined 0.20% to 656, while France’s CAC 40 fell 0.66%. Germany’s DAX 40 also dropped 0.18% and the UK’s FTSE 100 eased 0.28%.

Higher government bond yields added to the equity pressure, particularly banks and consumer-sensitive sectors. Santander, Deutsche Bank, LVMH and Adidas were among the weaker performers, falling between 1% and 3.40%. Technology stocks offered some support, with ASML gaining 2.60% as investors tracked gains in US artificial intelligence (AI) stocks following strong results from Anthropic. Argenx also rose 1% after reporting positive trial results for its Vyvgart treatment data.

Asian markets ended higher, as stronger performances in China and Hong Kong offset gains in parts of the region. In Japan, the Nikkei 225 rose 0.74% to around 69 220 points, supported by continued demand for AI and technology stocks despite weaker-than-expected domestic growth data. Hong Kong’s Hang Seng Index gained about 1.48%, recovering from recent losses, while China’s Shanghai Composite advanced 1.35%, supported by strength in blue-chip and export-focused companies. Investors continued to balance softer US economic data against concerns about elevated energy prices and potential supply disruptions.

Back home, South African equities rose on the back of resource shares. The FTSE/JSE All Share Index gained 0.54% to 114 672.93 points, while the Top 40 added 0.69%. The Resources 10 Index jumped 3%, with Metals and Mining advancing 3.40%, while Industrials declined 0.83% and Financials slipped 0.34%. The rand firmed 0.15% against the US dollar to R16.22 and 0.22% against the British pound to R21.94, while trading at R18.78 against the euro.

Commodity markets closed firmly at 21h46 SAST with Brent crude oil rising 2.54% to $90.77 per barrel. Gold gained 0.98%% to trade at $4 419.36 per ounce, while silver rose 1.95% to $65.93 per ounce and platinum advanced 1.58%.

15/08/2026

A bit of politics - Frans Cronje of the SRI is probably one of South Africa’s leading political analysts. In the attached reel he provides his opinion of DA Leader Geordin Hill Lewis.

14/08/2026

Technology gains lift US equities as Fed rate-hike expectations ease
14 August 2026

US equities closed higher on Thursday as softer-than-expected producer price data reinforced expectations that the Federal Reserve (Fed) will hold rates steady at next month’s meeting. The S&P 500 climbed 0.65% to a fresh record close of 7 798.99, while the Nasdaq Composite advanced 0.81% to 26 803.03 and the Dow Jones Industrial Average added roughly 70 points. Headline producer prices were flat in July 2026, missing forecasts for a 0.20% rise, while core PPI increased by only 0.20%, below the 0.30% expected; coming a day after a benign CPI print, the figures eased recent worries about more hawkish messaging from Fed officials and helped consolidate market bets on a September pause.

Technology shares led the advance, with chip names tracking strength in South Korean peers: Micron rose 4.20%, Intel and Marvell posted solid gains, and SanDisk surged 13.70%. Sentiment was further supported by reports that Anthropic is pursuing an initial public offering and is in talks to acquire AI startup Decart for about $6 billion, underscoring continued confidence in AI-related capital expenditure. Laggards limited the Dow’s advance, however: banks and industrials pulled back, with Bank of America down 1.10% and RTX falling 1%, while Cisco slumped 8.40% after forecasting a slowdown in AI data centre-related sales for the current fiscal year.

European markets were mixed. The Euro STOXX 50 gained 0.20%, while the STOXX Europe 600 edged lower to 659. ASML advanced 2.70% and Adyen surged 16.40% after raising its revenue forecast, while Maersk gained 9.40% after exceeding profit expectations and raising its full-year guidance. Germany's DAX 40 declined marginally to 26 292, while France's CAC 40 fell 0.30% to 8 651 as weakness in luxury and industrial stocks weighed on the index. London's FTSE 100 fell more than 0.50% as declines in commodity-related shares offset stronger-than-expected UK economic data.

Asian markets were mixed. China's Shanghai Composite fell 0.50% and the Shenzhen Component declined 0.87% as investors remained underwhelmed by the latest policy-support measures. Japan's Nikkei 225 rose 1.16% to 68 308, with technology and financial shares leading gains.

South African equities ended lower on Thursday. The FTSE/JSE All Share Index declined 0.75% to 114 115.15 points, while the Top 40 Index fell 0.90%. Resource shares underperformed, with the Resources 10 Index falling 3.13% and Metals & Mining declining 3.41%, while financials gained 0.74%. The rand weakened 0.30% against the US dollar to R16.19, 0.24% against the British pound to R21.84, and 0.34% against the euro to R18.67. South Africa's 10-year government bond yield eased to around 8.58% from an over one-week high of 8.61%.

Commodity markets were lower. At 21h08 SAST, Brent crude oil declined 2.19% to $87.03 per barrel. Gold fell 1.26% to $4 351.38 per ounce at 21h34 SAST, while silver declined 1.39% to $64.39 per ounce and platinum eased 2.58% to $1 723.70 per ounce.

12/08/2026

Global markets mixed as investors weigh oil prices and Fed rate outlook
12 August 2026

Global markets traded mixed on Tuesday as investors assessed energy prices, geopolitical developments and the outlook for US monetary policy. US equities remained slightly lower, while European markets edged higher to record levels. Asian markets weakened as renewed uncertainty over US-Iran tensions weighed on investor sentiment.

US equities traded below the flatline, with the S&P 500 declining 0.30% and the Dow Jones Industrial Average losing 184 points, while the Nasdaq 100 fell 0.30%. Investor attention remained focused on energy prices and the possibility of a Federal Reserve (Fed) rate hike next month, with markets pricing roughly even odds of rates being raised or left unchanged. The yield on the 10-year US Treasury note fell to 4.68% from above 4.71% in the previous session as oil prices steadied amid signs of diplomatic efforts to reach an agreement between the US and Iran. Attention is now shifting to today’s US consumer price inflation data, which is expected to provide further insight into the outlook for interest rates.

European markets edged higher, with the STOXX Europe 600 rising to a record 660.8 and the Euro STOXX 50 gaining 0.50% to a record 6 553. Technology and energy shares supported gains, with ASML advancing 2.70% and Siemens Energy rising close to 3%. Germany’s DAX 40 climbed 0.30% to a record 26 385, led by utilities and energy-related shares. France’s CAC 40 eased 0.10% to 8 715 as renewed geopolitical tensions weighed on luxury, industrial, and financial stocks. London's FTSE 100 was little changed as gains in energy shares offset weakness in defensive stocks.

Asian markets weakened. China's Shanghai Composite fell 0.82% to 3 934.1, while the Shenzhen Component declined 0.40% to 14 259.4 as fading optimism over a near-term easing of US-Iran tensions weighed on sentiment. Japan's yen weakened past 159 per US dollar as the currency remained under pressure from wider interest-rate differentials, fiscal concerns, and elevated energy and import costs.

South African equities ended sharply lower on Tuesday. The FTSE/JSE All Share Index declined 1.34% to 115 942.72 points, while the Top 40 Index fell 1.38%. Industrial shares underperformed, with the Industrial 25 Index falling 2.86%, while financial shares declined 1.38%. The rand weakened 0.16% against the US dollar to R16.22, 0.11% against the British pound to R21.90, and 0.13% against the euro to R18.71.

South Africa's unemployment rate rose to 33.60% in 2Q26 from 32.70% in the first quarter, with the number of unemployed people increasing 4.20% to 8.481 million. Employment edged 0.10% lower to 16.739 million.

Commodity markets were mixed. At 20h19 SAST, Brent crude oil rose 1.16% to $88.74 per barrel as traders weighed conflicting signals around developments in the Middle East. Gold declined 0.40% to $4 370.94 per ounce at 20h57 SAST, while silver fell 1.57% to $64.70 per ounce and platinum eased 0.20% to $1 750.05 per ounce.

07/08/2026

Global markets retreat as oil rebound revives interest-rate concerns
7 August 2026

Global markets traded mixed on Thursday as higher oil prices and renewed inflation concerns weighed on investor sentiment. US equities retreated after stronger energy prices revived expectations that the Federal Reserve (Fed) could raise interest rates next month, while European markets closed modestly higher on the back of resilient corporate earnings. Asian markets delivered a mixed performance as investors continued to reassess the outlook for artificial intelligence (AI)-related shares.

US equities closed lower, with the S&P 500 declining 0.20%, the Nasdaq 100 easing 0.40%, and the Dow Jones Industrial Average falling 464 points. Investor sentiment weakened as crude oil prices rebounded following reports that Iran is considering restrictions on shipping through the Strait of Hormuz, raising concerns that higher energy prices could keep inflation elevated. Financial stocks came under pressure, with JPMorgan declining 0.80% and Morgan Stanley falling 2.10%, while Alphabet lost 1.30%. Among notable movers, Western Digital fell 13% after disappointing guidance, Sandisk declined 6.80% following weaker-than-expected results, and SpaceX gained 6.10% as shares exited their post-IPO lock-up period.

Higher energy prices also influenced bond markets. The yield on the 10-year US Treasury note remained elevated after concerns that sustained inflation could prompt further monetary tightening. Investors also continued to monitor developments surrounding the Fed after reports suggested Chair Kevin Warsh remains prepared to raise interest rates should inflation accelerate further.

European markets ended slightly higher despite lingering geopolitical uncertainty. The STOXX Europe 600 gained 0.20% and the Euro STOXX 50 rose 0.40%, supported by stronger corporate earnings and renewed demand for AI-related shares. Germany's DAX 40 added 0.05%, while France's CAC 40 gained 0.30% as luxury stocks advanced following encouraging earnings results. London's FTSE 100 erased early gains to close marginally lower, with weakness in heavyweight dividend-paying and energy shares outweighing gains elsewhere.

Asian markets closed mixed. China's Shanghai Composite advanced 0.57%, while the Shenzhen Component inched 0.24% lower as gains in gold mining shares offset weakness in AI and semiconductor stocks, while Japan's Nikkei 225 declined 0.93% as technology shares remained under pressure despite easing concerns around the Strait of Hormuz.

South African equities ended marginally lower on Thursday. The FTSE/JSE All Share Index eased 0.09% to 115 306.31 points, while the Top 40 Index declined 0.11%. Financial shares outperformed, with the Financial 15 Index gaining 0.50%, while resource and industrial shares weakened. South Africa's 10-year government bond yield rose to around 8.55% as investors continued to assess the inflation implications of higher energy prices and the possibility of further policy tightening globally. The rand weakened against the US dollar by 0.26% to R16.35 and against the British pound by 0.13% to R22.00, while strengthening marginally by 0.06% against the euro to R18.84.

Commodity markets were mixed. At 21h00 SAST, Brent crude oil rose 4.13% to $82.73 per barrel. Gold edged 0.17% lower to $4 238.30 per ounce at 21h27 SAST, while silver declined 0.81% to $61.58 per ounce, and platinum eased 0.56% to $1 737.10 per ounce.