South Africa’s rand slipped on Tuesday following the release of labour market data showing a rise in the country’s already elevated unemployment rate. By 15h13 GMT, the rand was trading at R18.355 to the US dollar, around 0.60% weaker than its previous close. Statistics South Africa reported that the official unemployment rate increased to 32.90% in the first quarter of 2025, up from 31.90% in the final quarter of 2024. South Africa continues to face one of the highest unemployment rates globally, underscoring ongoing structural challenges in the labour market. 

US stock futures were mostly higher on Tuesday, with the S&P 500 rising by 0.47% and the Nasdaq gaining 1.47%. However, the Dow Jones slipped by around 190 points as initial optimism from the US-China 90-day tariff truce began to fade and investors digested fresh inflation data. April’s CPI figures came in at 320.80 points, suggesting the full impact of tariffs has yet to materialise. In response, traders increased bets on approximately 55 basis points of Federal Reserve rate cuts this year. Consumer discretionary and technology stocks led the gains, while healthcare lagged. UnitedHealth shares plunged nearly 13% to a four-year low of around $330 after its CEO stepped down and the company withdrew its financial guidance.

European stocks closed higher, extending gains from the previous session amid renewed optimism over US-China trade relations. The Eurozone’s STOXX 50 rose 0.40% to close at 5 411, while the STOXX 600 edged slightly higher to 545. Markets were buoyed by the 90-day pause in trade tensions between the US and China, supporting a more stable economic outlook. The automotive sector led gains, with Volkswagen, BMW, and Stellantis up between 3% and 4.50%. Industrial stocks also advanced, while Munich Re fell 4.50% after wildfire-related losses hit its quarterly results.

The FTSE 100 fell by 0.08% closing at 8 597.99 as investors weighed mixed corporate updates and economic data. Losses in major UK stocks offset gains elsewhere, while unemployment increased and a slowing wage growth reinforced expectations of potential Bank of England rate cuts.

Asian markets closed mixed as also investors reassessed the impact of the US-China 90-day tariff agreement. The Nikkei increased by 1.43%, while the Shanghai Composite edged up 0.15% to 3 374.21 amid cautious sentiment. In contrast, the Hang Seng Index fell 1.87% as concerns over the sustainability of the trade pause and profit-taking weighed on the market.

Commodity markets reflected a mixed tone, with oil buoyed by improved risk appetite, while gold retreated from recent highs. At 19h43 SAST gold prices slipped to $3 243.99 with a drop of 4.37% per ounce, marking a sharp pullback as investors shifted focus away from safe-haven assets amid easing inflation concerns. Meanwhile, Brent crude rose by 2.71% to $66.72 per barrel, supported by optimism surrounding global trade and firmer demand expectations.