US, European Markets Edge Higher on Tech, AI Led Momentum
US, and European markets were buoy by tech and AI led rally despite elevated global oil prices and inflation concerns. The trend appears to be shifting in Asian markets on Thursday.
The market is seeing fading momentum in the technology and artificial intelligence trade, driving a sharp reversal across Asian markets, despite solid gains in the previous US and European sessions.
The Hang Seng Index is trading 2.80% lower as weakness in technology and battery shares persists, while the Nikkei 225 is down 1.92%. Australia’s ASX 200 closed 0.43% lower as persistent inflation strengthened expectations of another rate increase and weighed on risk appetite.
The pullback follows a tech-led Wall Street rally, where strong corporate results reinforced optimism around AI demand. The NASDAQ closed 1.05% higher, while the S&P 500 gained 0.58% and the Dow Jones advanced 0.69%.
European equities also rebounded after two sessions of losses, led by technology and energy shares. The Euro Stoxx 50 closed 1.40% higher, while the FTSE 100 added 0.19% as oil majors and banks offset concerns over persistent inflation and rising public borrowing.
The Johannesburg Stock Exchange (JSE) is set for a weaker open this morning as global futures retreat, Asian markets are trading lower, and broad commodity pressure compounds the negative offshore lead after both local benchmarks closed down.
Hong Kong equities are extending their decline, with Tencent falling 3.45%, a negative read-through for Naspers and Prosus.
On the resources side, a 2.01% drop in the S&P/ASX 300 Metals and Mining Index points to pressure on JSE miners, while softer gold and a three-month low in platinum add to the strain on precious metal miners and PGM counters.
Brent crude is the exception, with its advance offering some support to energy shares. South African market sentiment was mostly driven by a heavy day of macro developments, as September inflation came in higher than the previous month, but reading below consensus expectations while core inflation eased.
The softer-than-feared inflation print provided some reassurance that price pressures remain contained despite higher oil prices and geopolitical risks. August retail sales also exceeded expectations, suggesting consumer spending remains relatively resilient despite elevated interest rates and a weak labour market.
Meanwhile, the Medium-Term Budget Statement (MTBS) delivered by Finance Minister Enoch Godongwana was broadly well received. Government confirmed that debt peaked at 78.4% of GDP in FY26, below earlier projections, and introduced a new fiscal anchor aimed at ensuring debt sustainability.
Measures including reduced weekly bond issuance by the National Treasury and the temporary fuel levy relief also supported sentiment in fixed income markets, with yields declining across the curve. However, a downgrade to 2026 GDP growth expectations to 1.2% tempered enthusiasm, leaving equities under pressure despite the more encouraging fiscal outlook.
As such, the JSE closed lower, with the All Share declining 0.67% to 109 658 and the Top 40 falling 0.79% to 101 739 as investors balanced company-specific disappointments against the broadly constructive fiscal update.
Financials fell 0.55%, pressured mostly by a 4.97% decline in Standard Bank after the group’s 9M26 trading update. Industrials were the weakest-performing sector, down 1.28%, while resources proved relatively resilient, easing 0.48%. Wall St. Up on Mega-Stock Rally, Unrest Keeps European Markets on Edge
