Why does this matter to me?

Global equity markets and the Rand’s exchange rate were strong last week for the second week in a row, mainly in anticipation of the US reaching trade deals with other countries, especially China, that might obviate the need for the US to impose reciprocal tariffs when the 90-day stay of execution on introducing such tariffs, lapses in July.

There were also increased hopes of peace in Ukraine following a rare earth minerals supply deal between the latter and the US. However, there is no guarantee that such optimism will be met. Instead, there is a substantial risk of disappointment if such deals are not met, with a concomitant risk of underperformance of financial assets. Domestically, setting a date in May for the tabling of a third attempted 2025/26 Budget should reduce uncertainty, as well as fears of higher taxes and a breakup of the GNU.