U.S., European Markets Upbeat on Tech, AI Stocks Momentum
The global equities markets were upbeat, with technology and AI stocks driving the momentum on expectations of geopolitical stability amid ongoing US-Iran diplomatic talks
A broad consolidation in risk appetite defined overnight trade, with global equities largely pausing after recent gains as investors positioned themselves ahead of a dense schedule of flash Purchasing Managers’ Index readings across Europe and the US.
Wall Street delivered a split session, with the Nasdaq 100 gaining 0.45%, driven by renewed AI enthusiasm following the debut of Meta’s Muse personal AI agent, while the broader S&P 500 ended roughly flat as a near-2% selloff in financials, triggered by AI disruption fears for banks and insurers, offset tech-led gains.
Investors also adopted a wait-and-see mode amid ongoing Federal Reserve (Fed) commentary. European equities delivered a similar performance, with the Euro Stoxx 50 ending slightly higher (+0.10%) as a technology-led advance and US-Iran diplomatic progress was offset by weakness in financials, pulling the FTSE 100 down 0.29%.
The mixed tone spread across Asian equities on Wednesday, as the Hang Seng Index fell 0.76%, weighed by a government probe reportedly targeting data security practices at large-language-model developers including DeepSeek, which dragged Tencent and other Chinese technology names lower, while caution ahead of the Trump-Xi summit further tempered appetite for Hong Kong-listed stocks.
The Nikkei 225 was closed for a public holiday. The ASX 200 was largely unchanged, as strong gains in miners led by BHP were offset by a sharp decline in Australian financial stocks, with the banking sub-index falling by over 1%, driven by fears that Meta’s Muse AI agent could disrupt consumer-facing financial services businesses.
The JSE is set for a cautious open this morning as conflicting signals from commodities and Asian markets temper directional conviction. Global futures are only offering modest guidance given the mixed picture across global markets.
Tencent is down 2.61% in Hong Kong, a move that will weigh on Naspers and Prosus at the open given their significant exposure to the Chinese technology group.
On the mining side, the ASX Metals and Mining Index is up 1.42%, lending some support to resource counters on the JSE. Precious metals, however, are providing a headwind, with both gold and platinum trading softer, which is likely to weigh on gold miners and precious metals counters.
The Johannesburg Stock Exchange (JSE) closed modestly higher on Tuesday, with the All Share Index gaining 0.21% to 113 349 and the Top 40 rising 0.26% to 105 618, as strength in industrials offset weakness in resources.
Industrials advanced 1.42%, led by heavyweight constituents Naspers (+4.59%) and Prosus (+4.38%), which tracked a sharp rally in Tencent after the company unveiled a new artificial intelligence (AI) image-generation model, reinforcing investor confidence in Tencent’s ability to monetise AI across its ecosystem.
It also highlighted its ability to compete with other Chinese technology leaders in the fast-evolving AI race. Resources weighed on the market, declining 0.60% as Precious Metals (-0.77%) retreated from recent highs amid a firmer US dollar and easing safe-haven demand, pressuring both gold and platinum group metal producers.
Financials were broadly flat (-0.07%) as investors remained cautious ahead of the SARB’s Monetary Policy Committee decision today, where markets largely expected a 25-basis-point rate hike to 7.25% as policymakers seek to anchor inflation expectations amid elevated energy prices.Nigerian Exchange Gains N297bn as Banking Index Drives Momentum
