Global Equities Markets Rise as Oil Bear, AI Drive Risk Appetite
Global equities markets climbed as lower oil prices in the commodity market, strong AI demand, and tech stocks drove risk appetite. US and European indexes were buoyed amidst elevated bond yields, while cryptocurrency prices fluctuated last week.
Wall Street closed higher, with the S&P 500 up 0.59%, the NASDAQ up 0.64%, and the Dow Jones up 0.83%, as technology gains offset concerns over “sticky” oil prices and elevated bond yields.
Easing oil prices and resilient technology sentiment supported risk appetite, even as investors looked ahead to US inflation data and the start of major banks’ earnings season.
The same relief extended to Europe while stronger earnings expectations provided further support. As a result, the Euro Stoxx 50 gained 0.76% and FTSE 100 1.06% in Friday’s session.
Asian trade, however, was more measured on Monday, according to a brief released by stockbroking and portfolio management subsidiary of First National Bank (FNB).
The Hang Seng Index is currently up 0.17%, supported by optimism over Beijing’s market stabilisation efforts and technology developments, while the ASX 200 closed 0.76% higher as lower oil prices buoyed miners and banks.
The Nikkei 225, meanwhile, ended Friday’s session relatively flat and is currently closed for a public holiday (Sports Day).
The Johannesburg Stock Exchange (JSE) is set for a firmer open this morning after the All Share and Top 40 closed higher on Friday, supported by a positive advance in global futures and most Asian markets.
Tencent’s 0.56% rise provides a positive read-through for Naspers and Prosus, while the 1.58% gain in Australia’s Metals and Mining Index supports local resource counters.
The commodity picture, however, is less uniform, with Brent crude retreating and gold edging lower, which may temper gains among gold miners. Platinum and palladium are firmer, providing a more constructive signal for PGM counters.
The JSE closed firmly higher on Friday. The All Share advanced 1.32%, and the Top 40 climbed 1.37% as risk-on sentiment was driven by a retreat in Brent crude from its mid-week highs.
This eased inflation fears and lifted risk appetite globally, providing relief to South African bonds and equities that had been under pressure from oil-driven rate-hike concerns.
Adding to the positive tone, Thursday’s solid US 30-year Treasury auction attracted strong demand, pulling long-dated yields back from multi-decade highs and supporting broader fixed-income markets.
Resources led the charge, rising 1.73%, with Precious Metals (+1.76%) the standout subsector following a rebound in gold amid lower Treasury yields. Industrials gained 1.25%, supported by the improved global risk backdrop, while Financials added 1.11%.
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