Markets in a Nutshell — September 2026
World
South Africa
Equities
World
Developed markets gained about 2%, supported by continued enthusiasm for AI, despite rising borrowing costs — Chinese shares also advanced, but European and emerging markets slipped
South Africa
The JSE finished almost unchanged after a sharp September selloff — resource shares gained 15% over the quarter, offsetting declines in financials and industrials
Bonds
World
Global government bonds fell as inflation fears, large government deficits and borrowing for AI infrastructure pushed yields sharply higher — borrowing costs in several major markets reached multi-decade highs
South Africa
Local bonds traded marginally lower as bond yields rose, holding up better than global peers — inflation-linked bonds gained as higher fuel prices revived inflation concerns
Currencies
World
The dollar recovered in September as expectations of further US rate increases grew — reversing its August decline and ending the quarter slightly stronger against the euro
South Africa
The rand strengthened during August’s commodity rally, then weakened in September — leaving it little changed against the dollar over the quarter
Commodities
World
Brent crude surged over 40% as renewed fighting disrupted Middle Eastern oil supplies, while copper and gold also gained — stronger metals supported South African miners, but costlier oil raised fuel costs and inflation risks
South Africa
Brent crude surged over 40% as renewed fighting disrupted Middle Eastern oil supplies, while copper and gold also gained — stronger metals supported South African miners, but costlier oil raised fuel costs and inflation risks
Economy
World
US consumer spending and investment remained resilient, while China’s growth slowed and retail sales disappointed — rising energy and transport costs threatened to prolong inflation despite weaker growth in some economies
South Africa
Figures released in September showed that the economy contracted slightly in the second quarter — SARB still expects a recovery, but higher fuel costs, interest rates and global uncertainty weigh on the outlook
Monetary and fiscal policy
World
The Fed raised interest rates in September as inflation remained elevated, joining other major central banks in tightening policy — heavy government borrowing added further pressure to market interest rates
South Africa
SARB raised its policy rate by a quarter of a percentage point to 7.25%, citing the worsening fuel shock and sticky services inflation — it also raised its near-term inflation forecasts despite weak economic growth