US stocks closed in the red on Monday as investors balanced encouraging economic data against escalating trade tensions and anticipation ahead of the US Federal Reserve's policy meeting. The S&P 500 and Nasdaq fell 0.60% and 0.70% respectively, snapping the S&P's nine-day winning streak, while the Dow slipped 98 points. Market sentiment dipped after President Trump proposed new tariffs, including a 100% duty on foreign films, though stronger-than-expected ISM services data offered some relief. However, uncertainty lingered after Trump stated he has no plans to meet with China’s President Xi. Energy, consumer discretionary, and tech stocks led the downturn. Notable declines included Netflix and Paramount, both down over 1.50%, Berkshire Hathaway dropping 5% on Warren Buffett’s planned 2026 departure, and ON Semiconductor tumbling 8.30% on a mixed outlook.

In Europe, stock markets recovered early losses to close marginally higher during low-volume trading due to the UK’s bank holiday. The Eurozone’s STOXX 50 ended flat at 5 285, while the broader STOXX 600 edged up to 537 as investors gauged potential impacts of US economic policies on European businesses.

Asian markets were also closed due to a public holiday.

Gold surged over 2%, drawing safe-haven interest amid geopolitical uncertainty, with some analysts forecasting a potential rally past the $4 000 mark.

In South Africa, the rand strengthened to R18.21/$ by 22h00 after Eskom expressed confidence in avoiding power cuts through the winter. The JSE All Share Index dipped 0.29%.