Weaker US Jobs Data Boosts Stocks, Rand Slumps, Oil Prices Ease

Global equities surged on Monday after a weaker-than-expected US jobs report eased concerns about a potential Federal Reserve interest rate hike this month. The non-farm payrolls report revealed only 29,000 jobs were created in September, far below the expected 90,000, while previous months' data were also revised downward. This shift in expectations led to a sharp drop in the likelihood of a Fed rate hike, with CME’s FedWatch tool showing just over a 20 percent chance, down from 65 percent earlier in the week.

The South African rand, however, continued its decline, trading at R16.71 to the US dollar on Monday morning, a four-week low. The currency has been under pressure due to a stronger US dollar, rising global bond yields, and investor pullbacks from emerging-market assets. Analysts noted that while the rand has weakened significantly against the dollar, its decline against the euro and pound has been less severe, suggesting the move is more about dollar strength than a deterioration in South Africa’s fundamentals.

Oil prices also softened, extending Friday’s drop, after G7 leaders announced plans to release 100 million barrels of diesel and crude oil from their reserves. The decision, aimed at easing inflation concerns, was further supported by Saudi Arabia’s reduction in oil prices to Asia. However, fuel supplies remain tight due to refinery damage from the Middle East conflict and Ukrainian strikes on Russian refineries.

Asian markets followed Wall Street’s positive momentum, with Tokyo’s Nikkei 225 jumping more than 2 percent, while Hong Kong, Sydney, and other major indexes also advanced. In contrast, European markets showed mixed results, with London edging up slightly while Frankfurt and Paris dipped. Oil prices continued to fall, with West Texas Intermediate down 1.6 percent at $89.69 per barrel and Brent North Sea Crude dropping 1.0 percent to $101.22 per barrel.