JSE faces fragile start as oil eases and gold recovers

South African investors enter November after a sharp Friday sell-off, with early Monday trading offering some relief through lower oil prices and firmer gold.

The JSE All Share closed Friday, 30 October, down 2.20% at 107,621.67, while the Top 40 fell 2.42% to 99,412.34. The resources index dropped 5.12%, with the financial index losing 1.95%.

The rand traded at R16.7320 to the dollar in Sharenet’s Friday evening snapshot, alongside R22.3981 to sterling and R18.6592 to the euro. These are Friday reference rates rather than Monday morning quotes.

Oil retreated in early Asian trading on Monday as diplomatic efforts to end the Iran conflict continued. At 2.11am South African time, Brent was down 1.40% at $111.84 a barrel and US West Texas Intermediate fell 1.50% to $102.56.

Supply risks remained, following attacks on Saudi energy infrastructure.

US equity futures edged higher, with S&P 500 futures gaining 0.4% and Nasdaq futures 0.8%. Japan’s Nikkei slipped 0.1%, while South Korea gained 0.8%. Gold recovered 0.9% to about $3,911 an ounce. Investors awaited Apple’s results and assessed concerns over artificial intelligence spending.

European markets had ended Friday unevenly: the FTSE 100 gained 0.05% to 10,727.93, while Germany’s DAX lost 0.95% and France’s CAC 40 slipped 0.21%.

Major currencies were subdued ahead of Tuesday’s US midterm elections. Sterling traded near $1.3387, the euro at $1.1159 and the yen at about ¥157.78 to the dollar. This week also brings US employment figures and interest-rate decisions in several major economies.

For South Africa, cheaper oil would offer relief from imported inflation, while recovering bullion could support gold producers. Wednesday’s municipal elections add a domestic focus to a week dominated by global political and monetary-policy uncertainty.

Sources: Sharenet, 30 October; Reuters, early Asian trading reports, 2 November. Monday figures reflect early trading and are not closing prices.