African and European stock markets opened cautiously on Monday as renewed military tension between the United States and Iran pushed oil prices and bond yields higher, increasing concerns about inflation and further interest-rate increases.
European shares edge lower
The pan-European STOXX 600 fell approximately 0.1 per cent to 655.54 points in early trading. Despite the subdued opening, the index remained on course for its fifth consecutive monthly increase, supported by strong corporate earnings and continued investor interest in artificial intelligence.
Germany’s DAX declined around 0.7 per cent ahead of inflation figures that could influence the European Central Bank’s September interest-rate decision.
London markets were closed for the British summer bank holiday, reducing trading volumes across the region.
European energy companies moved higher as Brent crude climbed above $90 a barrel. TotalEnergies, Orlen and OMV gained between approximately 1.8 and 3.8 per cent. German satellite manufacturer OHB rose more than 7 per cent after securing a contract worth nearly €1 billion to build satellites for the European Union.
South African shares retreat
South Africa’s FTSE/JSE All Share Index fell approximately 0.8 per cent, while the Top 40 index lost around 0.9 per cent in early trading.
Mining companies were among the weakest performers as gold and platinum prices declined. Gold Fields, AngloGold Ashanti and Anglo American Platinum all traded lower.
The South African rand remained close to 16.12 against the US dollar. A stronger dollar, falling precious-metal prices and rising oil costs created an unfavourable combination for Africa’s most industrialised economy.
Egypt and Nigeria remain stable
Egypt’s EGX 30 opened close to unchanged at approximately 54,916 points. The market has nevertheless gained around 1.2 per cent during August and remains substantially higher than one year ago.
Nigeria’s All Share Index was also largely unchanged at around 241,313 points. Gains in selected banking and energy shares helped offset weakness among industrial and telecommunications companies.
Oil and interest rates set the direction
Higher crude prices can support oil exporters such as Nigeria, but they increase fuel, transport and production costs across much of Africa and Europe.
Investors are also preparing for possible interest-rate increases in both the United States and the eurozone. Inflation figures, US employment data and developments in the Gulf are expected to determine market direction during the remainder of the week.
Newshub Editorial in Africa and Europe – 31 August 2026
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