Shein feeling the pain, and Eskom wants to export power

The rand was trading at R16.11 against the US dollar in early trade on Tuesday, 1 September 2026, slightly stronger than the day before.

Despite the strengthening rand, domestic equities fell under pressure with the JSE All Share Index declining by 1.62% and the Top 40 Index by 1.73%.

State-owned power utility Eskom posted its FY26 results yesterday, reporting a profit after tax of R30.3 billion despite electricity sales dropping 6.2% in the last year.

Wall Street indices ended the day lower as well, with the Nasdaq down 0.12%, the S&P 500 down 0.33%, and the Dow Jones down 0.70%.

Rising oil prices have sparked fresh US inflation concerns, while markets now forecast a more than 65% chance of a Fed rate hike in September.

European markets moved lower amid inflationary pressures from higher energy prices, with Germany’s DAX falling 1.2% after inflation accelerated in August.

In Asia, South Korea logged its ninth consecutive month of manufacturing expansion, while China’s manufacturing PMI for August rose to 51.5.

In the commodities market, oil traded above $91 per barrel as shipping risk in the Strait of Hormuz intensified. Gold was down to $4,427.31.

Analysts polled by Reuters expect oil prices to remain above $80 per barrel for the remainder of 2026.

On Tuesday morning, the rand was trading at R16.11 to the dollar, R18.70 to the euro, and R21.82 to the British pound.

Important finance and investing news

Nvidia’s $279 billion gamble: American chip-maker Nvidia has more than doubled its supplier commitments from the previous quarter up to $279 billion, a move which could help it avoid supply constraints and grow revenue, but could also become a liability in the event of a financial downturn. [Wall Street Journal]

Eskom wants to export power: Eskom is looking to export more electricity outside of South Africa as domestic demand continues to decline and its surplus generation capacity keeps growing, with the company hoping to restore lost industrial demand at the Mozal aluminium smelter in Mozambique. [BusinessDay]

Amazon in hot water: The Federal Trade Commission filed a lawsuit against Amazon on Monday alongside 22 US states, alleging that the company had defrauded its advertising customers by overcharging $1.2 million through price-misleading practices in online ad auctions. [Yahoo Finance]

Shein shares hit a slump: Shares in the Chinese online fashion giant Shein slid after its long-awaited Hong Kong debut failed to meet expectations, with shares tumbling 10% following a $1.7 billion IPO, which placed the company’s value well below previous estimates. [Reuters]

Nedbank gets R13.9 billion green light: The Central Bank of Kenya has approved an $842 million (R13.9 billion) takeover of NCBA Group, which will see the South African bank gain a 66% controlling stake in the Kenyan lender. [BusinessDay]