Wall Street, European Markets Rally on Global Inflation Relief Bets
Wall Street and European markets rally in anticipation that lower oil prices will reduce global inflation risk after the US president announced that talks between Washington and Tehran will resume.
The S&P 500 advanced 1.48%, the Nasdaq Composite surged 2.13%, and the Dow Jones Industrial Average gained 1.32%, lifted by Amazon (+4.58%) crossing the $3 trillion market capitalisation threshold and broad mega-cap technology strength.
In Europe, the Euro Stoxx 50 (+1.08%) closed at a fresh record high on the same oil-driven inflation relief, while the FTSE 100 slipped 0.10% as AstraZeneca’s (-6.25%) sharp decline weighed on the index.
Asian markets are trading in mixed territory this morning – the Nikkei 225 is down 0.30% as a weak Japanese government bond auction stokes Bank of Japan (BoJ) tightening expectations, the Hang Seng is off 0.49% on technology losses, and the ASX 200 bucks the regional trend, rising 1.23% on mining and energy gains.
The Johannesburg Stock Exchange (JSE) is set for a stronger open this morning as global futures point broadly higher, and commodities lend firm support, even as Asian markets trade with a mixed tone.
Tencent is trading lower by 0.61% in Hong Kong, a modest negative read-through for Naspers and Prosus. However, the ASX Metals and Mining Index is up 0.97% in Sydney, lending support to resource counters on the JSE.
Spot gold is marginally firmer, while spot platinum is trading meaningfully higher, providing a constructive backdrop for precious metals counters. Brent crude is firmer this morning, recovering from Monday’s sharp decline, supporting energy-linked names.
The JSE started the week on strong footing, in line with global markets, as geopolitical tensions eased in the Middle East. The All Share Index advanced 1.06% at 112 675 points, and the Top 40 rose 1.27% at 104 571 points.
Resources (+2.25%) led the market higher, supported by a strong rally in gold counters, with the Precious Metals and Mining Index gaining 3.47% and AngloGold Ashanti (+8.6%) and Gold Fields (+3.7%) benefitting.
Industrials (+0.86%) were lifted by gains in heavyweights, Naspers (+2.94%) and Prosus (+2.7%), while MTN (+1.85%) reversed some losses amid a positive global sentiment on telecommunications. Financials (+0.77%) traded firmer as investors welcomed South Africa’s wider trade surplus, with banks closing higher: FirstRand (+1.8%) and Capitec (+2.03%). Oil Prices Fall Sharply on Peace Hope, China Cuts Imports by 50%
