Global Markets Up as Investors Pile into Chipmakers on AI Trade Conviction
Led by US and European indices, the global markets edged higher as investors piled into chipmakers on AI trade conviction, with Anthropic doubling down on mid-term spending to $40 million to advance AI regulation.
US stocks rallied on Tuesday with the Nasdaq surging 1.29%, the S&P 500 gaining 0.89%, and the Dow Jones up 0.74%, led by a 5.21% surge in the Philadelphia Semiconductor Index as dip buyers piled back into chipmakers on renewed conviction in the AI trade, First National Bank said in a brief on Tuesday.
It said, however, investors continued to monitor headlines surrounding volatile talks between the US and Iran. European markets delivered a similar performance.
Stoxx Europe 600 gained 0.56%, and the FTSE 100 was up 0.58%, led by a sharp rebound in tech and chipmakers, while strong corporate earnings from Novartis added to the positive tone.
Asian markets are trading mostly higher this morning – South Korea’s KOSPI surged 1.52% as chipmakers extended their rebound, the Nikkei 225 was little changed (+0.06%) as AI-related infrastructure stocks gained, but a weaker yen weighed on retailers.
FNB reported that the ASX 200 edged up 0.25% while the Hang Seng lagged with a 0.83% drop amid gaming stock weakness.
The Johannesburg Stock Exchange (JSE) is set for a positive open this morning as a rebound in risk-on sentiment following a recovery in the tech sector restored some confidence in equity markets. In addition, most global futures are also pointing towards a firmer start.
Tencent (a readthrough for Naspers and Prosus), however, has sold off heavily and is down over 6% amid concerns about mobile gaming revenue.
The S&P/ASX 300 Metals and Mining Index is up 2.51% today, driven by a combination of surging gold (above $4 100/oz.) and silver (near $60/oz.) prices on dip-buying and safe-haven demand amid escalating United States (US)-Iran tensions – this will lend support to resource counters on the JSE.
The local bourse closed the session on Tuesday marginally above the line, supported by firmer commodity prices as markets continued to monitor the conflict between the US and Iran after Washington carried out a tenth consecutive day of strikes.
Resource (+2.41%) counters like Harmony (+4.82%), DRDGold (+4.59%) and Sibanye Stillwater (+4.01%) benefitted from higher safe-haven demand for Precious Metals (+2.59%).
Meanwhile, Industrials (-1.71%) weighed on the broader market as market movers Naspers (-3.88%) and Prosus (-3.84%) reversed gains from the previous session and Retailers (-1.75%) fell amid cost fears as oil prices continued to elevate.
Financials (-0.01%) were flat as markets took caution ahead of the SARB’s rate announcement due on Thursday. The All Share Index and Top 40 gained 0.04% and 0.16% at 108 980 points and 100 772 points, respectively. Wall Street Slips, FTSE 100 Climbs Amidst US-Iran Hostilities
