Bad news for anyone who uses diesel, and France on the edge of debt spiral

The rand was trading at R16.63 against the US dollar on the morning of Tuesday, 6 October 2026, strengthening somewhat from the day before.

South African equities closed slightly lower yesterday, with the JSE All Share Index down 0.05% and the Top 40 Index down 0.10%.

Private-sector activity declined at its fastest pace since December 2025, with the S&P Global South Africa PMI falling to 49.0 in September from 50.5 in August.

The country is bracing for fuel price hikes of around 10% for diesel and up to 12% for petrol, driving up input cost inflation.

On Wall Street, markets advanced on a mega-cap tech rally, with the Nasdaq leading at an increase of 1.05%, followed by the S&P 500 at 0.66%.

This is despite US 10-year Treasury yields briefly reaching their highest level since 2002 amid persistent fiscal and inflation concerns.

European markets were mixed, with the STOXX 600 rising 0.40% while France’s CAC 40 dropped 0.80% to a six-month low.

This comes as the country navigates political uncertainty and fiscal deficit concerns, with investors questioning the government’s ability to cut spending.

In Asia, indices mostly rallied on tech shares, with Japan’s Nikkei 225 posting gains of 2.40% while the Hang Seng gained 0.28%.

Mainland China markets remained closed for the National Day holiday, and are scheduled to reopen on Thursday, 8 October.

In the commodities market, oil remained around $101 per barrel as supply concerns eased following the G7 release of 100 million reserve barrels.

Meanwhile, gold declined to $4,122.57 per ounce as rising Treasury yields continue to weigh on precious metal prices.

On Tuesday morning, the rand was trading at R16.63 to the US dollar, R18.67 to the euro, and R22.00 to the British pound.

Important finance and investing news

France on the verge of financial spiral: After years of overspending, France has emerged as one of Europe’s weaker economies, with investors expecting things to only get worse. The country pays more to borrow than former crisis countries like Greece and Italy, while its budget deficit is surpassed only by the United States, and it has accrued more than $1 trillion in debt by 2030. [Wall Street Journal]

Truworths bets big on credit: Truworths is looking to grow its customer base by expanding its credit offerings, even as macroeconomic pressures are placing strain on household finances and making it difficult for consumers to repay what they owe. Account customers are responsible for 71% of Truworths Africa’s retail sales. [BusinessDay]

McDonald’s is being sued: McDonald’s has been sued in a federal court in Chicago, calling for a nationwide class action alleging that the fast food company illegally adjusts menu prices across its franchises and company-owned locations using a dynamic artificial intelligence-powered menu pricing system. [Reuters]

Brazilian stocks soar in presidential race: Brazilian stocks surged on Monday as Flávio Bolsonaro emerged as the frontrunner in the country’s presidential election following first-round voting. Investors are betting that the right-wing candidate will win with enough of the vote to push fiscal reform. [Semafor]

Bad news for anyone who uses diesel: Despite ships now carrying almost as much crude oil out of the Strait of Hormuz as they were before the Iran war began, the flow of diesel through the Strait remains heavily subdued, with countries now scrambling to secure supply. Meanwhile, damaged refineries and tight supply are keeping prices elevated. [Wall Street Journal]