South African financial markets react nervously after crypto and equity sell-off

Crypto crashes spark jitters across markets

South Africa’s financial markets experienced a rollercoaster week as investor nerves were frayed by recent volatility in cryptocurrencies and equities. Bitcoin, after a painful tumble of more than $20,000, briefly touched $63,000 before climbing back above $70,000, keeping traders on edge.

“Markets are recalibrating,” says Gabriel Shahin, founder of Falcon Wealth Planning. “Investors are shifting from growth-heavy tech stocks and cryptocurrencies toward large-cap value sectors, such as industrials and financials.”

Equities move cautiously on the JSE

The All Share Index (ALSI) mirrored global uncertainty, moving in a narrow range between 118,500 and 120,057 points, ultimately ending just 6 points higher than the previous Fridaya small rebound after a dramatic 4.15% drop of roughly 5,000 points.

Meanwhile, the JSE Precious and Mining Index recovered 4.7%, lifted by renewed commodity and gold demand, even as precious metals prices struggled to regain footing. Gold, for example, traded near $4,966 per ounce, just shy of the symbolic $5,000 mark.

Rand shows resilience amid volatility

The Rand also experienced choppy trading last week. The local currency bounced between R15.97/$ and R16.32/$, eventually closing stronger at R16.03/$. Against the Euro and Pound, the Rand gained 17 cents and 26 cents, closing at R18.95/€ and R21.82/£, respectively.

With the Minister of Finance’s budget speech scheduled for 25 February, traders are bracing for further movement, expecting a narrower but potentially stronger trading band.

Wall Street volatility ripples globally

On Wall Street, investors endured a week of extreme swings, reflecting nervous sentiment after the previous Friday’s sharp sell-off. The Dow Industrial Index swung wildly, surging 2.7% on Friday after losing ground earlier in the week.

The volatility is compounded by delays in key US economic data. Non-farm payrolls for January 2026, initially due on 6 February, will now be released 11 February, while CPI inflation data is pushed to 13 February. December’s delayed report showed only 50,000 new jobsbelow expectationsbut the unemployment rate fell to 4.4%, better than projected.

“These releases will be market movers,” analysts warn, as investors weigh potential shifts in US monetary policy amid lingering uncertainty.

Domestic data under the microscope

Back home, Statistics South Africa will release December manufacturing production data on Wednesday, providing a snapshot of local industrial activity. Investors are also watching the Rand, whose swings often reflect both domestic and international shocks.

With cryptocurrencies still jittery, equities moving cautiously, and upcoming US and domestic data threatening to sway sentiment further, South Africa’s financial markets are clearly navigating a volatile global landscape.

{Source: IOL}

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