The South African rand remained largely stable throughout Thursday’s trading session, as markets grappled with the fallout from US President Donald Trump’s unexpected Oval Office confrontation with South African President Cyril Ramaphosa—an incident that overshadowed the country’s budget presentation. By 15h40 GMT, the rand was trading at 18.01 against the US dollar, little changed from its close the previous day. On the equities front, the Top-40 index was down approximately 0.30%. Meanwhile, the yield on South Africa’s benchmark 2030 government bond rose by 1.5 basis points to 8.895%, indicating a slight weakening in bond prices.

In the United States, the three major stock indices fluctuated between marginal gains and losses as investors weighed the fiscal implications of President Trump’s newly passed tax bill. The House of Representatives narrowly approved the legislation, which is projected to widen the federal budget deficit by nearly $3 trillion over the next decade and includes a $4 trillion increase in the debt ceiling. The bill now moves to the Senate, where a vote is expected by August. Despite fiscal uncertainty, flash S&P Global PMI figures revealed stronger-than-anticipated growth in both the services and manufacturing sectors in May, even as input costs rose amid easing tariff-related tensions.

Back in the UK, the FTSE 100 declined by 0.50% on Thursday, pressured by disappointing corporate earnings and mixed economic data. Shares in EasyJet dropped 2.60% after the airline reported a widened pre-tax loss of £394 million for the first half of the financial year, up from £350 million a year earlier, though the company remains confident in achieving its full-year profit targets. In contrast, BT Group rebounded from early losses to close nearly 3% higher, buoyed by a modest increase in annual profits, robust demand for its fibre broadband services, and a £900 million cost-saving initiative.

Across Europe, equities closed firmly in negative territory, mirroring broader global market weakness amid mounting concerns over the US fiscal trajectory and persistent risks to European economic growth. The pan-European STOXX 50 index fell 0.60% to 5 425, while the broader STOXX 600 declined by 0.70% to 540. Fresh data indicated that private sector activity in the Eurozone unexpectedly contracted in May, highlighting a more pronounced impact from prevailing economic uncertainty than previously anticipated.

In Asia, Japanese markets suffered notable losses. The Nikkei 225 dropped 0.84% to end the day at 36 986, while the broader Topix index shed 0.58% to 2 717, marking a two-week low for Japanese equities following an overnight sell-off on Wall Street. In China, equities edged lower as mainland markets broke a two-day winning streak. The Shanghai Composite slipped 0.22% to 3 380, while the Shenzhen Component fell 0.72% to 10 220.

In commodity markets, WTI crude oil futures slid towards $60 per barrel, reaching two-week lows amid reports that OPEC+ may consider another substantial production hike. Meanwhile, gold prices fell nearly 1% to around $3 290 per ounce, ending a three-day rally, as traders took profits and a stronger US dollar dampened investor sentiment.