The South African rand strengthened against a weaker US dollar, trading at 17.9475 ZAR/USD by 15h22 GMT, ahead of the national budget speech and a scheduled meeting between President Cyril Ramaphosa and US President Donald Trump. This uptick in the rand was also reflected in the local bond market, with the 2030 government bond yield decreasing by 2 basis points to 8.86%. The Johannesburg Stock Exchange's Top 40 index rose approximately 0.30%.

In the United States, stock indices closed lower, ending a six-day winning streak. The S&P 500 and Nasdaq both declined by 0.40%, while the Dow Jones Industrial Average lost 114 points. This pullback followed a period of optimism driven by easing trade tensions and expectations surrounding President Trump's proposed tax and tariff policies. However, investor sentiment turned cautious amid renewed uncertainties regarding trade negotiations and political resistance to the tax plan. A broad sell-off in technology stocks contributed to the downturn, with notable declines in companies such as Alphabet, Nvidia, Meta, Apple, and Microsoft.

Across the Atlantic, European markets closed higher, with the Eurozone's STOXX 50 index gaining 0.40% and the broader STOXX 600 up 0.70%. This positive performance was supported by strong sessions for heavyweight pharmaceutical companies and investor optimism regarding increased government spending in Europe.

In the UK, the FTSE 100 added 0.90%, marking its fourth consecutive session of gains. The index was bolstered by corporate earnings, including a 7% rise in Vodafone shares following the announcement of a €2 billion share buyback programme and stronger-than-expected Q4 service revenue growth of 5.40% on an organic basis.

Asian markets exhibited mixed performances. The Japanese Nikkei 225 edged up 0.10% to close at 37 529, supported by comments from Prime Minister Shigeru Ishiba emphasising Japan’s commitment to national interests in trade talks. In China, the Shanghai Composite rose 0.40% to close at 3 380, while the Shenzhen Component gained 0.80% to 10 249, as market sentiment improved following the People's Bank of China cutting key lending rates for the first time in seven months.

In commodities, WTI crude oil futures fluctuated around $62 per barrel as traders assessed potential risks stemming from US-Iran nuclear negotiations. Gold climbed 2% to above $3 285 per ounce, buoyed by a weaker US dollar and heightened geopolitical uncertainty.