Global Markets Indices Shift as AI Concerns Dominate Headlines
The global equity markets’ performance was mixed, with US and European stocks closing relatively stronger while Asian indicators diverged last week.
Asian markets are trading mostly higher this morning, taking broadly positive cues from Wall Street, as investors cheered the resumption of peace talks in the Middle East.
However, concerns surrounding AI continued to dominate the headlines, with selloffs among some of the large tech counters offsetting upside momentum from news that US President Trump had cancelled a planned strike on Iran.
The Hang Seng Index was barely changed, and the Nikkei 225 fell 0.89%, pressured by the softer Chinese data and broader risk aversion, while the ASX 200 advanced 0.25%, supported by firmer precious metals.
US markets closed higher on Friday; the Nasdaq gained 0.62%, and the S&P 500 edged up 0.38%, but the session was defined by a sharp divergence within “Big Tech”, First National Bank (FNB) said in a brief.
Amazon surged by about 15% after posting its biggest quarterly revenue growth in over four years, soothing AI spending concerns, while Apple tumbled 7% following a disappointing earnings report.
European markets were essentially flat-to-marginally positive. The Euro Stoxx 50 (+0.2%), CAC 40 (+0.3%), and DAX (+0.1%) eked out small gains.
Meanwhile, the FTSE 100 slipped 0.3% – as an early record-high surge driven by a chip rebound was almost entirely reversed with Novo Nordisk tumbling 7% after its new drug failed to reduce heart attack and stroke risk in a large study.
Also, Universal Music Group plunged a record 25% on disappointing subscription revenue growth, wiping out the bulk of the day’s gains.
The Johannesburg Stock Exchange (JSE) is set for a flat-to-positive open on Monday as global futures point broadly higher while the commodity complex presents a divided picture.
Tencent is trading up 2.78% in Hong Kong, providing a positive cue for Naspers and Prosus. Australian mining stocks are firmer with the ASX 300 Index up 0.48%, lending support to resource counters on the JSE.
Gold and platinum are both higher this morning, offering a constructive backdrop for gold miners and precious metals counters. The sharp decline in Brent crude introduces a meaningful headwind for shares in the energy sector.
The South African bourse closed the week on softer footing as investors moved away from gold and telecom counters, while real estate counters and selected consumer names provided support.
The All Share Index and Top 40 closed down 0.34% and 0.48% at 111 493 points and 103 258 points, respectively. Resources (-1.41%) were the primary drag as precious metal producers came under pressure, reflecting weaker sentiment across the gold complex.
Industrials closed 0.97% lower on Friday, weighed down by the sharp decline in MTN (-10.85%). Financials (+1.04%), bolstered by gains in FirstRand (+1.26), remained resilient, closing the trading session in positive territory. Global Crypto Market Cap Dips as Bitcoin Retreats
