US, European Markets Rise as Global Risk Appetite Improves
US and European equities markets rose as global risk appetite improved, despite a sharp slowdown in AI and tech stock selloffs following concerns over capital spending and Chinese rivalry.
Easing pressure on chip shares steadied global risk appetite, although doubts about the durability and financing of artificial intelligence spending continued to limit gains in technology stocks.
The S&P 500 closed 0.33% higher, the NASDAQ added 0.08%, and the Dow Jones advanced 1.08%, according to a brief from a stockbroking and portfolio management subsidiary of First National Bank (FNB).
Nvidia’s (-1.84%) defence of CoreWeave’s (+5.9%) financial position helped contain selling despite concerns over circular financing.
Europe diverged as weak eurozone industrial production compounded pressure from chipmakers and lenders, leaving the Euro Stoxx 50 down 0.36%.
By contrast, the FTSE 100 closed 1.08% higher, supported by defensive shares, better-than-expected UK growth, and limited technology exposure.
Against that backdrop, Asia-Pacific trading is stronger. The Nikkei 225 is trading 1.86% higher as regional technology shares rebound, while the Hang Seng Index is currently up 1.21% despite lingering uncertainty over AI spending.
Australia’s ASX 200 closed 1.00% higher after weaker employment tempered expectations of further Reserve Bank of Australia tightening.
The Johannesburg Stock Exchange (JSE) is set for a firmer open this morning after closing higher in the previous session as global futures edge up and Asian markets trade higher.
Easing US yields and a softer dollar are lending some support to risk appetite, while Tencent’s 0.67% advance offers a positive read-through for Naspers and Prosus.
The resources picture is also supportive, with the S&P/ASX 300 Metals and Mining Index up 3.26%, pointing to tailwinds for diversified miners.
In addition, gains in gold, platinum and palladium should underpin precious metals miners and PGM counters. The JSE closed firmly higher yesterday, with the All Share gaining 1.53% and the Top 40 rising 1.68%.
The market showed notable resilience, opening in positive territory despite hotter-than-expected US consumer inflation data released overnight, which weighed on global markets and pushed US and Asian equities lower.
Sentiment was supported by a recovery in precious metals prices (+2.60%), which snapped a three-day decline and boosted gold miners and the broader resources complex (+2.08%).
Financials also added meaningfully to the advance, up 1.69%, with banks (+1.71%) broadly firmer on the day, while South African government bond yields moved mostly lower, providing a supportive backdrop for rate-sensitive stocks.
Lastly, industrials also rose meaningfully, gaining 1.27% on the day. Memory Chip Stocks Selloffs Drag Wall Street, European Markets Mixed
