Global Equities Markets Mixed, US-China Talks Guide Risk Appetite
The global equities markets were mixed as investors continue to react to geopolitical instability in the Middle East, fuelling an energy crisis. Wall Street was mixed, and European stocks weakened amid negative sentiment.
Markets are watching US-China talks for guidance on global equities performance this week. US and Chinese officials began talks in New York aimed at clearing the way for possible agreements on trade, Artificial Intelligence (AI) and critical minerals ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping later on Thursday,
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng began talks at JPMorgan Chase’s Manhattan headquarters on Sunday, with US Trade Representative Jamieson Greer also taking part.
US increased interest rates amid rising inflation concerns, resulting in a weaker Dow Jones outcome on Friday, though the S&P 500 ended positive.
Elevated oil prices have started to decline as the global supply outlook improved despite concerns over Saudi Arabia exports. Technology demand and hopes for progress in US-China talks are supporting risk appetite, while easing oil prices are easing inflation concerns.
The Hang Seng Index is trading 0.57% higher on strength in technology and health-tech shares, and the Nikkei 225 is up 1.38%, stockbroking and portfolio management subsidiary of First National Bank (FNB) said in a brief on Monday.
Stock analysts reported that Australia is the exception, with the ASX 200 little changed as Reserve Bank of Australia Governor Michele Bullock’s hawkish inflation warning weighed on sentiment.
That backdrop follows a mixed finish on Wall Street, where the S&P 500 ended the week up 0.17%, and the NASDAQ gained 0.39%, while the Dow Jones fell 0.18%, as higher rates, oil prices and bond yields weighed against technology resilience.
European markets were weaker amid expectations of further policy tightening.
The Euro Stoxx 50 ended the week down 1.37%, while the FTSE 100 lost 1.45% as banks, energy and mining shares retreated after the Bank of England warned that a prolonged Middle East conflict could require tighter policy.
The Johannesburg Stock Exchange (JSE) is set for a firmer open this morning as positive global futures and advancing Asian markets offer scope for a rebound after the All Share and Top 40 closed lower on Friday.
Technology is leading the regional tone, with Tencent up 1.91%, providing a constructive read-through for Naspers and Prosus as Hong Kong shares gain.
The resources picture is less supportive. A 0.88% decline in the S&P/ASX 300 Metals and Mining Index may cap gains in local miners, despite iron ore and copper extending their advances.
Meanwhile, softer gold and platinum prices point to pressure on precious metals miners and PGM counters, while Brent crude’s decline could weigh on energy shares.
The JSE closed lower on Friday, with the All-Share Index declining 1.01% and the Top 40 retreating 1.23%. Resources led losses, tumbling 2.52%, while commodity markets reacted to easing oil supply concerns after Saudi Arabia moved to restore pipeline capacity.
Investors also watched ongoing diplomatic engagements between the US and Iran, which gained momentum. Financials and Industrials also ended weaker, falling 0.62% and 0.32%, respectively
