JSE All Share Powers Ahead Despite Trump’s Tariffs

Precious metals keep SA markets shining

It’s been another record-breaking week for South Africa’s stock market. The JSE All Share index touched an intraday high of 101,034 points on Friday, up 0.2% on the day and a strong 3.2% for the week. For the year so far, the index has climbed nearly 20%.

The surge comes courtesy of precious metals. Gold prices are up 30% since January, platinum has soared 50%, and palladium isn’t far behind at 29.8%. For South African miners and investors, that’s pure sunshine, despite some dark clouds in global trade.

Trump’s tariffs land, but markets shrug

Last Thursday, the Trump administration slapped a 30% tariff on a wide range of South African exports. The move has rattled politicians, sparked fierce debate over Pretoria’s trade negotiating skills, and stirred old fears about South Africa’s vulnerability in global markets.

Yet the JSE barely blinked. The rand ended the week flat at R17.70 to the dollar, still more than 5% stronger than at the start of the year. Traders seem more interested in commodity prices than in political theatrics, at least for now.

The global backdrop

Trump’s “reciprocal” tariff blitz has lifted America’s average import duty to its highest level since the 1930s. But global markets have shown a poker face. After a brief dip when tariffs took effect, US stocks rallied, ending the week in the green. The Dow rose 1.4%, the S&P 500 gained 2.43%, and the Nasdaq added 1.3%.

Corporate America is also holding its nerve. Of the 87% of S&P 500 companies that have reported second-quarter results, 81% beat Wall Street’s expectations. That’s a far cry from the doom-and-gloom many predicted when tariff talk began.

What’s next for SA investors

This week’s local spotlight falls on Statistics SA’s unemployment figures for Q2. Joblessness stood at 32.9% in the first quarter, with analysts expecting a seasonal dip to 32.6%. Mining production data for June is also due—news that could move resource stocks.

Globally, investors are watching US inflation numbers, with July CPI expected to rise to 2.8% from 2.7%. Higher-than-expected inflation could rattle markets and reignite tension between President Trump and Federal Reserve Chair Jerome Powell.

Why it matters beyond the numbers

For ordinary South Africans, the JSE’s rally is both encouraging and frustrating. Strong stock performance boosts pension funds and investor confidence, but it can feel disconnected from daily economic reality, especially with unemployment stuck above 30% and households bracing for higher import costs as tariffs bite.

This week will test whether the JSE’s resilience is built on solid ground or just the glitter of gold and platinum.

{Source: IOL}

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