Global Equities Markets Rally on AI Momentum, US Election
AI chip stocks set the tone for global equities, lifting US benchmarks even as investors rotated into other sectors. The S&P 500 closed 1.58% higher, and the NASDAQ gained 1.44%, while the Dow Jones ended the session up 3.03%.
Falling yields provided support, with the US 10-year yield nearing a two-month low as the dollar weakened, stockbroking and portfolio management subsidiary of First National Bank (FNB) said in a brief.
European shares followed the broader advance, with the FTSE 100 up 1.79% and the Euro Stoxx 50 up 1.97%. Asian trading was more uneven this morning. The Hang Seng Index is up 3.09%, but the Nikkei 225 is down 1.57% despite Japan’s 10-year yield hitting a 14-week low.
By contrast, the ASX 200 is trading 2.61% higher as Australia’s 10-year yield sits at a 10-week low. Attention now turns to US jobless claims, productivity, and labour cost data.
The South African stock market closed lower on Tuesday, with the All Share declining 0.23% and the Top 40 falling 0.24%, as the loss of South Africa’s duty-free access under the African Growth and Opportunity Act (AGOA) weighed on sentiment despite broadly supportive global market conditions.
Export-oriented industrial and financial shares came under pressure after the announcement, though the market recovered some early losses as the session progressed.
Resources were the main drag, down 0.56%, reflecting weaker gold prices and a rebound in oil prices after reports suggested the US and Iran remain far apart in ceasefire negotiations, and banks ended largely unchanged.
Industrials edged 0.15% lower, and financials were among the market’s relative outperformers (-0.04%). Investor appetite for South African debt also remained strong, evidenced by robust demand at the National Treasury’s weekly bond auction, suggesting confidence in local fixed-income markets despite the AGOA setback.
Separately, the South African Reserve Bank delayed the transition from JIBAR to the new ZARONIA benchmark rate by five months to 31 May 2027 due to legislative delays.
The Johannesburg Stock Exchange (JSE) is set for a flat-to-positive open this morning as most global futures flash green, with most Asian markets also trading higher. Falling global bond yields and a softer dollar are supporting precious metals, although weaker Nasdaq futures temper the broader risk appetite.
Tencent’s 5.73% rally provides a strong positive read-through for Naspers and Prosus, and the S&P/ASX 300 Metals and Mining Index’s 7.52% advance offers a constructive signal for JSE resource counters. Brent crude is easing, which could limit support for energy shares.
