Tech, AI Stocks Drive Global Equities Markets Recovery
Global equities markets rose as expectations for U.S. Federal Reserve rate hikes eased, with technology and AI stocks leading the momentum that pushed U.S. and European indexes higher last week.
Traders said softer US employment data reduced expectations for another Federal Reserve rate increase in October, lifting technology shares and setting a firmer global tone despite elevated bond yields.
As a result, Wall Street ended the week higher: the S&P 500 up 0.73%, the NASDAQ up 1.19%, and the Dow Jones up 0.49%, a stockbroking and portfolio management subsidiary of South African First National Bank (FNB) said in a brief.
The same rate relief, along with cheaper oil, supported Europe’s rebound from a three-and-a-half-month low. Technology led the recovery, with the Euro Stoxx 50 up 1.02% and the FTSE 100 up 0.32% in Friday’s session. Asia is more uneven this morning.
The Nikkei 225 is trading 2.54% higher, while the Hang Seng Index is currently down 0.08% as elevated US Treasury yields and subdued trading offset positive overnight cues from Wall Street.
Australia’s ASX 200 is trading marginally higher, up 0.05%, as a relatively broad sell-off, in conjunction with hawkish domestic rate concerns, tempered support from softer US jobs data.
Local equities closed broadly higher on Friday, with the All Share Index gaining 0.57% to 108 378 and the Top 40 rising 0.61% to 100 780, snapping a two-session losing streak.
Banks (+1.51%) led the advance as weaker-than-expected US September payrolls data prompted investors to scale back expectations of a near-term Federal Reserve rate hike, supporting global risk assets and emerging market equities.
As a result, financials were the standout sector, rising 1.20%. Resources added a more modest 0.37%, while precious metals shares came under pressure as gold prices fell after a rebound in US Treasury yields, and industrials lagged with a gain of just 0.20%.
The JSE is set for a firmer open this morning after closing higher in the previous session despite mildly negative global futures tempering the positive cues seen across Wall Street.
In Asia-Pacific, Tencent has gained 0.19%, providing a modest positive read-through for Naspers and Prosus, and the S&P/ASX 300 Metals and Mining Index is up 0.33%, supporting local resource counters.
The commodities backdrop is less uniform, with Brent crude and gold easing. Platinum’s advance above the $1 700 mark should underpin PGM counters and platinum miners, while strength in silver offers an additional constructive signal for precious metals miners. Iran’s Oil Minister Mohsen Paknejad Resigns
