On Wall Street, the S&P 500 rose by 0.50%, the Nasdaq added 0.30%, and the Dow Jones gained more than 260 points on Friday, as investors responded positively to the latest PCE report, which showed that inflationary pressures remained contained. The data aligned with forecasts, with core inflation holding steady and headline PCE inflation registering a slight increase. These figures reinforced expectations that the Federal Reserve has scope to implement further interest rate cuts this year, with markets now pricing in an additional reduction in the coming months. On the trade front, President Trump announced that a 100% tariff would be imposed on branded or patented pharmaceutical products from 1 October, unless manufacturers begin establishing production facilities within the United States.

In the UK, the FTSE 100 rose by more than 0.50% on Friday, buoyed by strength in pharmaceutical and energy stocks, despite the announcement of new tariffs by the United States. President Trump revealed a 100% duty on branded and patented drugs beginning 1 October, unless companies have manufacturing operations in the US. Other tariffs included 25% on heavy trucks, 50% on kitchen cabinets and vanities, and 30% on upholstered furniture. Nevertheless, shares in AstraZeneca rose by 0.40% and GSK gained 1.30%, with both companies already possessing substantial US-based production, thus limiting their exposure to the tariffs.

European equity markets ended the day sharply higher on Friday, rebounding from losses in the previous two sessions as investors reassessed the potential impact of the new US tariffs and considered how European corporates might fare amid ongoing global interest rate uncertainty. The Eurozone's STOXX 50 index rose by 0.9% to 5 495, while the broader STOXX 600 gained 0.70% to close at 554. Banking stocks led the advance, supported by a decline in long-term bond yields across the currency bloc, with notable gains of over 2% for BBVA, BNP Paribas, Nordea, and Intesa Sanpaolo.

In Asia, Japan’s Nikkei 225 Index declined by 0.87% to finish at 45 355 on Friday, ending a three-day winning streak and echoing overnight losses on Wall Street after stronger-than-expected US data dampened hopes for deeper rate cuts by the Federal Reserve. Market sentiment was further dented by the announcement of new tariffs from President Trump, targeting furniture, heavy trucks, and pharmaceuticals.

In China, the Shanghai Composite fell by 0.65% to 3 828, while the Shenzhen Component lost 1.76% to close at 13 209, snapping a two-day rally. The declines followed the announcement of significant new US tariffs, including a 100% duty on pharmaceutical imports, a 25% levy on heavy trucks, and duties of up to 50% on furniture. Additionally, profit-taking weighed on high-performing technology shares amid growing concerns about the sustainability of the artificial intelligence rally. Overall market activity was subdued in the lead-up to the National Day holidays.

On the domestic front, South Africa’s main stock market index, the SAALL, rose to 106 700 points on 26 September 2025, registering a gain of 0.85% from the previous session.

In commodities, WTI crude oil rose above $65 per barrel on Friday, reaching its highest level since early August and heading for its strongest weekly performance since early June, driven by tightening supply conditions and improved demand expectations. Gold prices remained above $3 750 per ounce, holding close to the record high of $3 790, as strong demand for safe-haven assets continued to offset the impact of a stronger US dollar and rising Treasury yields amid expectations of a less accommodative Federal Reserve.