South African rand starts week muted as tariff uncertainty hangs over markets
At 0627 GMT the rand traded at 17.96 against the dollar , about 0.1% weaker than Friday's close.
Trump on Saturday threatened to impose a 30% tariff on imports from two of the largest U.S. trading partners - the European Union and Mexico - beginning August 1.
South Africa also faces the prospect of a 30% trade tariff on its exports to the United States as well as an additional 10% levy because of its membership of the BRICS group of developing nations.
South Africa's statistics agency will release mining output (ZAMNG=ECI), opens new tab figures on Tuesday and retail sales (ZARET=ECI), opens new tab data on Wednesday that should provide clues to the health of Africa's most industrialised economy.
Its benchmark 2035 government bond was weaker in early deals, as the yield rose 3 basis points to 9.905%.
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BBC News
22 minutes ago
- BBC News
EU-UK trade deal: Ireland 'not exactly celebrating', minister of state says
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The National
24 minutes ago
- The National
John Swinney and Donald Trump to meet in Aberdeen
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Reuters
24 minutes ago
- Reuters
European shares jump to 4-month peak on US-EU trade deal
July 28 (Reuters) - European shares advanced to a four-month high on Monday, led by gains in pharma and semiconductor stocks, after the EU signed a trade deal with the United States, avoiding steeper tariffs ahead of the August 1 deadline. The pan-European STOXX 600 index (.STOXX), opens new tab rose 0.7% by 0815 GMT. Most regional bourses were also in the green, with Germany's blue-chip DAX (.GDAXI), opens new tab rising 0.6% and France's CAC 40 (.FCHI), opens new tab gaining 0.8%. UK's FTSE 100 (.FTSE), opens new tab added 0.1%. The trade agreement imposes a 15% tariff on most EU goods and requires the bloc to invest around $600 billion in the U.S. Tariff rates on spirits are still under negotiation. The deal "is positive for markets because it removes a lot of the uncertainty", said Anthi Tsouvali, multi-asset strategist at UBS Wealth. European companies are now "getting that clarity and I didn't see anything in the fine print that is outward and more negative," Tsouvali said. Expectations of similar trade agreements before the August 1 tariff deadline have helped lift the benchmark STOXX 600 to within 1.8% of its all-time high hit on March 4, marking a 19.5% rebound from its April trough. Pharmaceutical (.SXDP), opens new tab and automobile stocks (.SXAP), opens new tab - sectors with the largest exports to the United States - hit their highest in one month and two months, respectively. The baseline tariff brings tariffs for the auto industry down from the 27.5% faced before. Pharma heavyweights Novo Nordisk ( opens new tab and Roche (ROG.S), opens new tab rose 0.4% and 1.4%, respectively. Shares of Stellantis ( opens new tab and Volvo Cars ( opens new tab, which have pulled their 2025 financial guidance due to U.S. trade uncertainty, rose marginally. Spirits stocks Pernod Ricard slipped 1.4% and 1.3%, respectively, as the trade deal did not contain any decision regarding the spirits sector. Heineken ( opens new tab fell 4.3% after the Dutch brewer said it was weighing all options to deal with growing tariff challenges long-term, including shifting manufacturing. LVMH ( opens new tab rose marginally after media reports said French luxury goods group is in discussions with multiple buyers to offload its fashion label Marc Jacobs. ASML ( opens new tab, the world's biggest supplier of computer chip-making equipment, jumped 4.2%, while chipmakers Besi ( opens new tab and ASM International ( opens new tab were among the top gainers on the index adding 5.5% and 3.8%, respectively. In a week full of key events, investors will closely monitor policy decisions from the Federal Reserve and the Bank of Japan, earnings from several "Magnificent Seven" companies and the looming August 1 tariff deadline.
