Global Equities Markets Gain Momentum as Energy Costs Ease
Global equities markets gained momentum as easing energy costs spurred demand for riskier assets on Tuesday. Wall Street advanced, with the S&P 500 closing 0.32% higher, the NASDAQ gaining 0.66% and the Dow Jones adding 0.30%.
The underlying drivers were seen in Europe, where easing energy costs and sovereign yields helped manufacturers and technology names recover.
The FTSE 100 closed up 0.29%, also supported by healthcare and mining stocks, while the Euro Stoxx 50 added 0.12%. Lower oil prices and retreating Treasury yields supported risk appetite, while renewed demand for technology and AI infrastructure stocks drove the strongest gains.
On Wednesday, Asia is extending the broadly constructive tone after progress in Iran talks further reduced pressure on oil prices. The Hang Seng Index is trading 0.68% higher, driven by strength in healthcare and technology shares,
Also, Nikkei 225 is gaining 0.78%. Australia is the exception, with the ASX 200 currently down 0.33% as energy stocks weaken and investors assess inflation and construction data.
The Johannesburg Stock Exchange (JSE) is poised for a mixed opening, as support from firmer Asian markets is offset by erratic trading in developed market futures.
Japanese and Hong Kong equities are trading higher, with Tencent’s 1.04% advance providing a positive read-through for Naspers and Prosus after both the All Share and Top 40 closed lower in the previous session.
On the resources side, the 0.33% decline in the S&P/ASX 300 Metals and Mining Index provides a less supportive backdrop for local miners.
The JSE closed modestly higher on Tuesday as lower oil prices offered some relief to credit-sensitive sectors that had been pressured by energy-driven inflation concerns despite the latest US sanctions threat against Iran.
The All Share Index and Top 40 gained 0.10% and 0.13% to 116 828 points and 109 535 points, respectively. Financials (+1.22%) led the market higher, with the Life Insurance Index (+1.83%) and Banks Index (+1.24%) outperforming on the back of strength in Sanlam (+2.77%), Standard Bank (+2.26%) and Old Mutual (1.76%).
Industrials (-0.13%) drifted lower amid declines in Datatec (-5.86%), Canal+ (-4.73%) and British American Tobacco (-1.6%). Resources (-0.54%) were pressured by weaker energy and PGM prices, while gains in Northam (+3.12%) and Anglo American (+1.62%) were insufficient to offset losses in Sasol (-6.4%), Valterra (-5.38%) and Thungela (-2.84%).
