Global Economic Trends and Local Insights

In July 2025, the US consumer price index (CPI) rose modestly on both a monthly and yearly basis.
US President Donald Trump met Russian President Vladimir Putin to discuss Ukraine in August.
As China’s domestic market becomes more saturated and competitive, its companies are increasingly
looking to expand internationally to unlock new growth opportunities and strengthen their position in
the global economy.

Source: Graviton Perspectives

Macro Overview

Global overview

Developed market (DM) equities continued with their July highs into August, with the MSCI World Index ending positively at 2.61% m/m in US dollars. Emerging market (EM) stocks underperformed their DM peers in August, when the MSCI Emerging Market Index ended at 1.47% m/m in US dollars. Chinese stocks remain a key driver of EM stocks in 2025, with Chinese companies listed in Hong Kong up 26% year-to-date (YTD). The FTSE 100 posted gains of 0.92% in pound terms, a significant drop from July’s 3.96% m/m gains. The S&P 500 posted gains of 2.03% m/m in dollar terms, from July’s 2.24% m/m gains. Global property and global bonds both rebounded in August from July’s negative figures, to end in positive territory at 4.41% m/m and 1.45% m/m respectively, in US dollars. Global property posted the largest gains for the month. The Euro Stoxx 50 Index gained 0.65% m/m in August from July’s 0.45% m/m gain in euros. The Dow Jones Index continued July’s positive performance into August, gaining 3.42% m/m in US dollars. Japan’s benchmark Nikkei Index also ended the month in positive territory at 4.08% m/m in yen.

Local overview

South African equity markets delivered a sixth consecutive positive monthly return, with the FTSE/JSE All Share Index ending at 3.53% m/m in rand terms. This took the JSE’s YTD gains to 23.57%. Resources were the biggest drivers of local returns again in August, at 11.37% m/m. Gold miners were responsible for three-quarters of the JSE’s return in August. Together with their precious metal peers, the platinum miners, they have contributed more than half of the JSE’s YTD performance. Property, Financials and Cash gains continued into August at 2.80% m/m, 0.82% m/m and 0.61 m/m respectively, all in rand terms. Industrials rebounded from the negative performance in July to end August in positive territory at 1.17% m/m. The local bond market posted gains for short-, medium-, and long-term bonds. The FTSE/JSE All Bond Index ended the month positively at 0.75% m/m in rand terms. Bonds of 1-3 years were positive at 0.90% m/m along with bonds of 3-7 years at 1.05% m/m. Bonds of 7-12 years were positive at 0.90% m/m, and bonds of 12 years and above ended positively at 0.35% m/m. The rand strengthened against the US dollar and British pound by 2.20% m/m and 0.10% m/m respectively, but weakened against the euro by -0.07% m/m.