Market commentary

The FTSE/JSE All Share Index closed higher on Monday, amid mixed global peers, with this week's focus on the US consumer inflation report and SA's unemployment rate. The local bourse closed 0.28% higher, with the rand reaching a high of R18.34/$ at 17h50.

US stocks had a mixed start to the week as investors turned their attention to the upcoming inflation report, which may indicate the timing of interest rate cuts. The S&P 500 closed slightly lower, the Dow Jones ended its eight-day winning streak by losing 81 points, and the Nasdaq edged up by 0.30%.

Chinese stocks dipped on Monday, with the Shanghai Composite Index falling 0.21% to end at 3 148 points, while the Shenzhen Component decreased by 0.60% to 9 673 points. This pullback followed last week's gains, with investors responding to China's April inflation figures, which surpassed expectations. Over the weekend, data revealed a 0.30% y/y increase in the country's consumer price index for April, up from a 0.10% rise in March and in line with forecasts, while producer prices continued their downward trend. The Nikkei declined by 0.13%, as investors anticipate Japan's first-quarter GDP report later this week.

Turning to Europe, the FTSE 100 gave up its initial gains, ending slightly lower at 8 417 points on Monday, closing 0.20% below the previous session's record high. Market focus remained on assessing the latest corporate results, while traders paused after last week's strong gains and awaited key economic data for a clearer picture of the monetary and economic outlook.

Oil prices increased by over 1% to close at $79.12 per barrel on Monday, recovering from the previous session's decline. This rise was supported by indications of improving demand in China, the world's largest importer of oil, and worries about possible supply disruptions in Canada. Meanwhile, spot gold fell to approximately $2 340 per ounce as investors shifted their focus to the upcoming key US inflation reports to gain more insight into the US Federal Reserve's monetary policy direction.