In a turbulent start to the week, the Brent crude oil increased 1.34% to $97.37 per barrel by late yesterday afternoon, buoyed by escalating military exchanges between the US and Iran, which have reignited concerns about supply disruptions in the strategically important Strait of Hormuz.
The increase builds on a Friday close of $96.28. Baker Hughes has also reported a slight uptick in the oil rig count, which rose by two, to a total of 449 for the week ending September 4, 2026, indicating ongoing exploration activity even amid geopolitical headwinds, according to Anchor Capital.
Gold falls after US jobs data
However, the precious metal gold did not share in the optimism of the oil market, marking a 0.5% decline to trade at $4,407.86 per ounce on Monday.
This follows a more substantial decline of 1.0% on Friday, where it closed at $4,430.25 per ounce after robust US jobs data elevated expectations for an imminent rate hike by the Federal Reserve.
On the commodities front, copper managed a modest gain, inching up 0.1% to finish at $14,370.75 per metric ton, while aluminium took a step back, closing 0.3% lower at $3,292.25 per metric ton.
"These fluctuations reflect an ongoing volatility shaped by macroeconomic factors," Anchor Capital stated.
In currency news, the South African rand witnessed a strengthening against the US dollar, trading 0.1% higher on Friday. On Monday, the rand traded at R15.98 to the dollar, the euro at R18.55, and the British pound at R21.59.
"Recent US employment figures revealed an increase in nonfarm payrolls, the largest in five months, coupled with stable unemployment rates, providing some momentum for the dollar."
As for bond yields, South African benchmark bonds exhibited a decline; the yield on the 10-year generic bond dropped to 8.80%, while the 20-year bond fell to 9.23%, indicating a possible shift in investor sentiment towards the time value of money amid changing rates," Anchor Capital said.
The JSE All Share Index was trading 0.24% stronger on Monday afternoon from Friday's close. Wall Street closed on a mixed note on Friday, with the tech-heavy NASDAQ showing some resilience with a 0.21% gain, fuelled by strength among mega-cap and AI-focused stocks.
Meanwhile, the S&P 500 and Dow Jones indices slipped by 0.38% and 0.19% respectively, as a hawkish signal emerged from the strong jobs report.
In Asia, markets were less impacted by the previous day's US rate-driven fluctuations, with South Korea’s KOSPI overall surging 4.6% on Monday - driven by demand for AI-related shares, and Japan's Nikkei gaining 2.12%. The broader MSCI Asia Pacific Index, excluding Japan, also rose, as investors appeared to dismiss US-Iran tensions in favour of technology sector gains.
Markets await US inflation figures
Bianca Botes, Managing Director at Citadel Global said, "With US markets shut for Labor Day, markets are looking to data releases later in the week. Thursday will see the release of the US’s August producer prices and weekly jobless claims, but it is Friday's US August Consumer Price Index (CPI) that is the key release and the one most likely to decide whether the market's hawkish repricing will continue."
"With the rand holding firm below the R16 mark against the dollar, as well as against the euro and pound respectively, the local currency appears resilient, offering a glimmer of hope amidst global volatility," Botes added.
ashley.lechman@nationalmg.co.za