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US-Iran peace talks optimism lifts tech shares, while South African market absorbs first interest rate increase since 2023.
Global markets delivered a mixed performance last week, as artificial intelligence (AI) and tech stocks drove Wall Street higher amid optimism over US-Iran peace talks, according to First National Bank (FNB).
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Wall Street finished last week trading near record highs. The S&P 500 rose 0.22%, the NASDAQ gained 0.20%, and the Dow Jones advanced 0.72%.
European and Asian Markets Diverge
European markets were more subdued. The FTSE 100 fell 0.16%, while the Euro Stoxx 50 edged 0.08% lower as investors digested mixed economic data and monitored developments surrounding the US-Iran memorandum aimed at maintaining the ceasefire.
In Asia, sentiment was more constructive. The Hang Seng Index rose 0.88%, and the Nikkei 225 gained 0.59% on sustained appetite for technology shares. Australia’s ASX 200 edged 0.04% higher.
JSE Poised for Firmer Open
The Johannesburg Stock Exchange (JSE) is poised for a firmer open this morning, with global futures trading higher and Asian markets broadly in positive territory, FNB said in a brief.
The bank noted that a 2.67% gain in Tencent provides a positive lead for Naspers and Prosus, while the S&P/ASX 300 Metals & Mining Index’s 0.39% advance should bolster local resource counters.
Firmer platinum prices are likely to benefit PGM stocks, although softer gold prices may weigh on precious metal miners, FNB added.
SA Reserve Bank Delivers First Rate Hike Since 2023
The local bourse closed lower on Friday with red screens across the board. The All Share Index fell 0.40%, and the Top 40 dropped 0.38%.
The session’s primary sentiment driver was the South African Reserve Bank’s 25-basis point interest rate hike to 7%, announced in the prior session.
It was the first increase since 2023, driven by rising inflation risks following the Middle East crisis, which pushed up fuel costs.
Sector Performance: Industrials Hit Hardest
Resources shed 0.16%, while Industrials bore the brunt of selling pressure, dropping 0.67%, amid sharp declines in Dis-Chem (-7.8%) and Pick n Pay (-7.7%). Financials (-0.35%) extended losses for the second consecutive session.
