South African stocks, government bonds and the rand currency strengthened in early trading on Wednesday, May 6, 2026 after US President Donald Trump hinted at a possible peace deal with Iran, lifting global risk appetite and boosting demand for emerging market assets.
– The rand was trading at 16.43 against the dollar at 0802 GMT About 1.5% from Tuesday's close.
– Trump said there has been “huge progress” toward a comprehensive deal with Iran and said he would stop the operation to take ships through the Strait of Hormuz.
– The US dollar was down about 0.3% against previous currencies, with oil prices also falling below $110 a barrel on expectations of a supply shutdown.
May start again from the Middle East.
– South Africa is a net importer of petroleum products and faces large fluctuations in global energy prices.
– “The risks are asymmetric at the moment, and the rand is sensitive to further adverse developments that could harm the country's terms of trade
and tilt cross-border flows against the currency,” ETM Analytics said in a research note.
– A business survey on Wednesday showed South Africa's private sector expanded the fastest
In April in almost four years.
– The top-40 index on the Johannesburg Stock Exchange was up 2.5%.
– South Africa's benchmark 2035 government bond also strengthened in early deals, with the yield falling 14 basis points to 8.71%.
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