Inflation and Reserve Bank set the week’s tone for SA markets

South African markets face a data-heavy week, with inflation, interest rates and oil prices set to remain the key drivers of sentiment.

The Reserve Bank's repo rate currently stands at 7%, after the economy contracted 0.2% quarter-on-quarter in the second quarter.

August consumer inflation figures are due this week ahead of the Bank's rate decision. Brent crude was trading around $103 a barrel, with any further rise a risk to inflation and the rand, while gold held above $4,300 an ounce.

Globally, US equities ended last week higher, with the S&P 500 at 7,637.76 and the Nasdaq at 26,418.30, while European markets weakened into the weekend – Germany's DAX fell 1.6% and London's FTSE 100 dropped 1.45% on Friday amid concerns over energy costs and geopolitical uncertainty.

Asian markets opened the week more positively, with South Korea's Kospi up 1.8% and the Chinese yuan strengthening to about 6.6957 to the dollar, its strongest level in more than three years.

Investors are also watching China-US trade developments, alongside oil, currency and bond-yield movements that continue to shape global risk appetite. For South Africa, the focus remains on August inflation, the Reserve Bank's rate decision, and the effect of elevated energy prices on households, businesses and the rand.