Markets Weekly: JSE & Global. August, week 2 edition

The week ran on a split narrative: corporate earnings kept delivering almost everywhere - from Sandton to London to Wall Street, while macro data increasingly hinted that the consumer, on both sides of the Atlantic, is running out of steam. Standard Bank posted a record profit, Merafe quadrupled its dividend, Aviva grew profit by a quarter, SanDisk staged a dramatic reversal. All while US retail sales posted their worst miss in over a year, consumer sentiment cratered, and copper prices dragged London's miners lower. Different markets = the same widening gap between what companies are reporting and what consumers are actually doing.

Key Indices Performance

Indices performance on the global stock markets, August 2026, week 2

Key indices split into two categories this week. Some are near-zero, showing low volatility for index-included companies while simultaneously demonstrating the ability to hold near their highs thanks to positive expectations. Others ended the week lower, under pressure from falling prices for some resources, high interest rates, and a strong currency.

1. S&P-500 index weekly review

S&P-500 index, August chart

From a technical analysis perspective, we see a long-term uptrend. The last price correction ended at the end of July, so there's every chance of seeing further growth. However, since we're talking about a chart with historical highs, the risk of peaking and reversing the trend remains high.

2. NASDAQ COMPOSITE Index weekly review

Nasdaq Composite index August 2026, week 2

In the first half of August, the index moved strictly within the upward trend and, after a local correction, inevitably rose. There's every chance that in the second half of August, we'll see a further upward movement and a test of the June high.

3. DOW JONES index weekly review

DOW Jones (US30) index, August 2026, week 2

This index fell on weak retail sales data, retreating from its peak. This could be seen as a price correction, but it shouldn't last long. It looks like a pause before a new surge within the next 30 days.

4. JSE TOP 40 index overview

JSE 40 index, August 2026, week 2

After the recent rally at the end of July, there's every reason to expect a trend reversal. At the very least, technical analysis indicators are pointing upward. This week's respite from the upward momentum appears to be natural. In fact, the index was under pressure due to the mining sector and falling resource prices. This is a relatively temporary factor that may not be present next time.

5. LSE (UK100) index weekly summary

UK 100 index chart, August 2026, week 2

A repeat of the situation with American indices. The only difference is that the decline is twice as strong and the pressure factors are different. This index, like the JSE 40, is under pressure from the mining sector, primarily copper producers. However, the upward trend is certain and is highly likely to resume.

US Market Weekly Review

Nebius (NBIS, Nasdaq), a Dutch neocloud provider (cloud infrastructure for AI added+50%, riding the same AI-infrastructure wave. The most exciting rally of the week.

SanDisk (SNDK, Nasdaq) is the standout story of the week. Shares surged as much as 32.66% after its 2026 Investor Day unveiled a long-term financial model targeting ~80% adjusted gross margins and mid-to-high-teens revenue growth through fiscal 2030, backed by a $93.9 billion contract backlog.

Super Micro Computer (SMCI, Nasdaq) added+26.15% on a strong revenue outlook, part of a broader AI-infrastructure rally alongside Dell and memory names.

At the same time the biggest crash occured with On Holding (ONON, NYSE) that collapsed by 18.7% - its worst trading day on record after cutting full-year revenue growth guidance to the "low 20s%" from a prior "at least 23%" promise, even though adjusted EPS technically beat estimates.

Macro backdrop: Soft CPI (July: +0.1% m/m, +3.4% y/y; core +0.2% m/m, +2.5% y/y) and flat PPI mid-week fueled the S&P 500's first-ever close above 7,800. But Friday's double miss - retail sales -0.6% (vs. +0.1% expected, the worst reading in over a year) and University of Michigan consumer sentiment sinking to 51.0 from 55.2 reversed the mood into the weekend. Attention now turns to Target and Walmart earnings next week, then Nvidia on August 26.

UK Market Review

FTSE 100 broke a five-week winning streak, down 1.4%, dragged mainly by mining stocks as copper prices fell — the sector's worst week since March.

Aviva's report is the bright spot of the week: H1 2026 group operating profit up 24% year-on-year to £1.326 billion, EPS up 10% to 31.8p, cash remittances up 47% to £1.498 billion, and the interim dividend raised 7% to 14.0p. Non-life profit beat forecasts by 16%; life profit missed by 9%. Peel Hunt reiterated a "buy" rating with an 800p target.

Filtering Microcaps and Penny-stocks, No individual UK stock moves cleared the 10% bar this week outside of the sector-wide mining weakness.

JSE Market Review

The trading week on the stock exchange was shortened: only four days out of five but perhaps this was for the better, as the index declined on all days. Over the week, the TOP-40 index fell by 3.5%. Volatility was low, with no sharp rises or falls.

On the positive side,
was noteworthy: record profit for the first half of the year: headline earnings increased 10% to R26.1 billion, ROE rose to 19.8% (the highest since the introduction of Basel III), and the interim dividend was the largest in history, R9.02 per share (up 10%). The stock has been trading in an upward trend since 2020, with the R339 region (a record set in June) remaining a key technical level, which it is approaching again.

Another company,
, also pleased with a strong report. Profits rose Merafe Resources to R512 million. A collapse in ferrochrome production fell by 75%, but this was offset by increased sales of raw chrome ore. This company also can have a status of "King of dividends" this week as they increased dividends by ++120%

Key Currencies

EUR/USD closed the week around 1.1567–1.1580, its highest level since mid-June, as a broadly weaker US Dollar (the Dollar Index slipped below 100) more than offset a choppy mid-week. Friday's rally erased losses accumulated earlier in the week.

EUR/USD chart August

Although technical analysis indicators are pointing upward, we still assess the price chart as slightly downward. At the same time, the Stochastic Oscillator is signaling overbought territory, so this is consistent with our assessments and expectations of a downward movement in the near future.

USD/ZAR: the rand continued to firm, trading around R16.17/USD by Friday, extending its recovery from the R16.98 three-month low hit in late July - consistent with a broadly softer dollar and easing Middle East risk premium.

USD/ZAR chart August 2026, week 2

This week, the currency pair has been in a calm phase, which is unusual for it. After a strong price correction, this is exactly what was expected. In the short term, consolidation will continue. The rand doesn't seem ready to strengthen against other currencies. Perhaps we're in for another positive price correction.

USD/JPY. The yen headed for its biggest weekly loss in three months (about -1%), trading near ¥159.2–159.4/USD as the effect of the late-July/early-August joint US–Japan intervention faded. Traders are watching the ¥160 level as a potential trigger for renewed official buying.

USD/JPY, August 2026

It seems that optimism is prevailing in the market and is moving the currency pair upwards.

Summary

Taken as a whole, this was a week that belonged to companies, not indices. Every market covered here produced at least one standout earnings story - Standard Bank, Merafe, Aviva, SanDisk, Aviva yet no benchmark closed the week convincingly higher: the Dow, JSE 40 and FTSE finished in the red, while the S&P and Nasdaq held onto their win streaks by the thinnest of margins.

It usually happens on the background of low volatility and lack of triggers. So only local corporate events add some shine to the market. Some investors call this excellent market stability, while others fall asleep, treating such periods on the stock exchange as a boring period without the chance to spot a winning asset, quickly profit from price changes, or see a desired entry point.