Markets in a Nutshell — December 2025
World
South Africa
Equities
World
Global equities advanced, led by European and UK stocks, despite weaker data and geopolitical concerns — Chinese shares gave back some of their year-to-date gains, while emerging markets gained on dollar weakness and soaring metals prices
South Africa
The JSE extended its rally as resource stocks surged on stronger metals prices and financials rebounded after months of selling — SA was one of the better-performing equity markets globally for the year
Bonds
World
Global bond yields moved in a tight range and credit spreads compressed further in a risk-on environment — while in Japan, the 10-year bond yield breached 2% for the first time in a generation after the BoJ lifted rates
South Africa
SA bonds rallied strongly on moderating inflation and the SARB’s repo rate cut — helped by lower borrowing needs and renewed foreign demand for SA bonds
Currencies
World
The US dollar declined into year-end as rate cut expectations firmed — most developed and emerging market currencies posted gains, with the yen and euro firming notably
South Africa
The rand appreciated meaningfully against the US dollar — supported by firm commodity prices, renewed capital inflows and broad-based dollar weakness
Commodities
World
Precious metals gold, silver and platinum surged to record highs as real yields declined and central banks increased purchases of bullion, and copper rallied strongly into the year end — but oil traded lower, weakened on oversupply concerns, while copper rebounded sharply
South Africa
Precious metals gold, silver and platinum surged to record highs as real yields declined and central banks increased purchases of bullion, and copper rallied strongly into the year end — but oil traded lower, weakened on oversupply concerns, while copper rebounded sharply
Economy
World
The US GDP print exceeded expectations growth but the data was compromised due to the government shutdown, while Eurozone activity stabilised — China’s economy was on course to achieve a 5% annual growth, but momentum started to slow
South Africa
SA economic growth expanded for the fourth consecutive quarter on improved mining and trade — but indicators remained weak, with low business confidence and muted investment
Monetary and fiscal policy
World
The US Federal Reserve and Bank of England delivered rate cuts as inflation trended lower, even as fiscal deficits are ballooning — central banks in developed markets signalled an end to the tightening cycle, with bond markets pricing in a more dovish policy stance into 2026
South Africa
The SARB delivered a well-signalled repo rate cut, citing contained inflation and improved domestic fundamentals — while National Treasury trimmed weekly bond issuance on the improving fiscal outlook