The South African Reserve Bank (SARB) has reduced the interest rate by 25 basis points to 7.25%, as anticipated by the markets. This decision, which followed a pause in March, was intended to support the sluggish economy amid a more favourable inflation outlook. Inflation is now forecast at 3.20% for 2025 and 4.20% for 2026, both lower than previous estimates. The improved outlook is attributed to lower oil prices, a stronger exchange rate, and the cancellation of planned value-added tax (VAT) increases. The JSE responded positively, closing higher.

US stock markets ended slightly higher on Thursday, bolstered by positive corporate earnings and optimism around Nvidia’s latest results. The S&P 500 and Nasdaq each rose by 0.40%, while the Dow added 117 points. Nvidia shares jumped 3.20% after surpassing sales expectations, driven by demand for AI chips, though the company warned that US export controls to China could affect future revenues by $8 billion. Gains were tempered by legal uncertainty after a US appeals court reinstated President Donald Trump's tariffs, which were previously blocked by a lower court ruling that deemed them unlawfully imposed.

In Europe, stocks lost earlier momentum. The STOXX 50 closed flat at 5 377 and the STOXX 600 slipped slightly to 548, despite both indices having gained over 1% earlier in the day. Investor optimism over a US court’s ruling against President Trump’s tariffs faded as the market considered that the administration might seek new legal routes to enforce the measures.

Asian markets advanced, with the Shanghai Composite climbing 0.70% and the Nikkei 225 gaining 1.88%. Trade discussions between the US and China have hit a temporary impasse and require direct talks between President Trump and President Xi Jinping to move forward, Treasury Secretary Scott Bessent said on Thursday.

Meanwhile, WTI crude oil prices fell to $60.90 per barrel, pressured by concerns over rising supply and a soft US economic outlook. A recent report showed the US economy contracted in early 2025, raising concerns about reduced fuel demand. Kazakhstan also signalled that OPEC+ might increase production at an upcoming meeting, though details remain uncertain.