Software Stocks Drag Wall Street, FTSE 100, Euro Stoxx 50 Rally
US equities fell into negative territory on Wednesday, with the S&P 500 and Nasdaq both down 0.14% and 0.57%, respectively, as software companies came under pressure before Alphabet’s (-1.5%) results, with Microsoft down 1.9% and Meta retreating 2.6%.
In its market brief, First National Bank (FNB) told investors that pressure came from rising oil prices, which ultimately fuelled inflation concerns.
Across the pond in the Eurozone, the FTSE 100 surged 1.24% as investors assessed the softer-than-expected inflation print in the United Kingdom.
The Euro Stoxx 50 climbed 0.50% as investors look ahead to the European Central Bank policy meeting, with market participants anticipating rates to be kept unchanged.
Asian markets are trading in the green, with the Nikkei 225 up (+0.46%) as traders weigh the prospect of faster Bank of Japan rate hikes, while the Hang Seng (+1.26%) benefits from strength in tech stocks.
The Johannesburg Stock Exchange (JSE) is set for an upbeat open this morning as Asian markets are trading higher amid a broad risk-on tone across the Asia-Pacific, which set the overnight narrative, coupled with a stronger rand.
Tencent is trading up 1.27% in Hong Kong, a constructive read-through for Naspers and Prosus. The S&P/ASX 300 Metal & Mining Index (+1.32%) is posting solid gains this morning, which bodes well for the local resources at the open.
The JSE reversed losses on Wednesday and closed higher on a day where local sentiment was dominated by South Africa’s June CPI and retail sales prints, which accelerated above expectations in June for the former and May for the latter, and reinforced the market’s expectations of a hawkish South African Reserve Bank decision later today.
The All-Share Index and Top 40 gained 0.64% and 0.84% at 109 683points and 101 615 points respectively, but this was driven entirely by Resources (+4.16%), which rallied as precious metals gained 5.10% supported by continued safe-haven demand amid escalating tensions in the Middle East – Harmony (+5.69%),
AngloGold (+5.57%), and Gold Fields (+5.21%). Industrials (-0.99%), adding to losses of the previous session, were weighed down by tech heavyweights and several retail counters including Pick ‘n Pay (-4.01%), TFG (-3.84%) and Clicks (-3.54%) on inflationary and weak domestic spending fears.
The prospect of higher interest rates also weighed on interest-rate-sensitive sectors, with Financials ending the trading session 0.26% lower. #Software Stocks Drag Wall Street, FTSE 100, Euro Stoxx 50 Rally#
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