The South African rand strengthened on Friday after President Cyril Ramaphosa announced plans for a second wave of reforms aimed at boosting economic growth. By 15h31, the rand had gained 0.30%, trading at 18.37 against the U.S. dollar, continuing its upward trend with a 1.80% increase since last Friday. In his annual State of the Nation Address (SONA) on Thursday, Ramaphosa outlined reforms focused on boosting South Africa’s growth to above 3%, including support for struggling state-owned enterprises like Eskom and Transnet, and increased infrastructure investment. According to ETM Analytics, "The SONA did not weaken the ZAR; on the contrary, it has been a very strong week for the currency."

US stock markets reversed early gains on Friday, with the S&P 500 falling by 0.60%, the Dow Jones losing approximately 250 points, and the Nasdaq declining 1%. Investors digested key economic data, including a surprise drop in Michigan Consumer Sentiment and soaring inflation expectations for the year ahead. The US jobs report showed slower payroll growth of just 143 000, well below expectations, though the unemployment rate fell unexpectedly to 4%, and wage growth accelerated by 0.50%. Amazon shares dropped over 3% after the company projected Q1 revenue growth of just 5% to 9%, its slowest rate on record.

The FTSE 100 edged lower on Friday after reaching a record high the previous day, but still posted a weekly gain, supported by the Bank of England’s rate cut. Marks & Spencer saw a 2% drop after announcing the departure of Richard Price, its chief of clothing, home, and beauty. Homebuilder stocks fell more than 3%, following Halifax data showing a stronger-than-expected 0.70% rise in UK house prices in January. Meanwhile, Legal & General gained after selling its US protection business to Japan’s Meiji Yasuda in a $2.3 billion deal, with Meiji acquiring a 5% stake in L&G.

In the Eurozone, the STOXX 50 index declined 0.60% to close at 5 323 on Friday, retreating from a recent record high as investors absorbed mixed US jobs data. The report showed a slower-than-expected jobs growth in the US, while the unemployment rate edged down to 4% and wage growth accelerated. On the corporate front, L’Oréal dropped more than 4% following its slowest quarterly sales growth since the pandemic.

In Asia, the Japanese Nikkei 225 Index fell by 0.72% to 38 787, while the broader Topix Index dropped 0.54% to 2 737. These declines broke a three-day streak of gains, despite strong domestic personal spending figures, which bolstered expectations of a hawkish Bank of Japan monetary policy. Household spending in Japan rose by 2.70% year-on-year, exceeding forecasts. Meanwhile, Chinese stocks surged, with the Shanghai Composite climbing 1.01% to 3 304, and the Shenzhen Component rising 1.75% to 10 576, reaching their highest levels in over a month. The rally was fuelled by optimism surrounding Chinese AI startup DeepSeek’s breakthrough in AI technology, which sparked renewed enthusiasm for domestic AI and robotics firms.

In commodities markets, WTI crude oil futures traded around $71 per barrel on Friday, heading for a third consecutive weekly decline, after President Trump reaffirmed his plans to boost US oil production and push crude prices lower. Meanwhile, gold remained above $2 860 per ounce, staying near its record highs touched earlier in the week, amid expectations of looser monetary policies from major central banks this year.