South Africa recorded a second consecutive monthly trade surplus in June as exports of vegetable products climbed, while oil imports also rose. The surplus reached 12.5 billion rand ($880 million) last month compared with a deficit of 22.95 billion rand in the same period last year. These latest trends could help support the rand and reduce the chances of higher interest rates.

Some African markets seem not to know which direction to follow as signs emerge that world markets are losing momentum as the post-Brexit rally has reached its peak. Some weak corporate results tarnished the bright picture that dominated Wall Street’s run contaminating Asian and European markets along. The recovery in resources also stopped following the retreat in the prices of oil, copper and precious metals. After the latest robust run in worldwide markets in anticipation of possible monetary stimulus programmes from the world’s major central banks to offset any Brexit consequences, it now seems that the world markets are waiting for a correction.

A positive sentiment gained the global market this week with the Dow Jones and the S&P 500 reaching new records. Better-than-expected economic data from China following strong performance in the US somewhat lifted sentiment. Chinese data and expectations of more stimulus or measures to support western economies amid a low-rate environment are supportive for high-yielding African markets assets.

As the summer break makes its entry, African markets remain as volatile as we know them. The losers of last week outperformed and became the winners of this week.