Global Markets Mixed With AI Stocks Dragging Trades, Indices

Global Markets Mixed with AI Stocks Dragging Trades, Indices

Global markets mixed, with AI stocks dragging on trade, and key performance indicators amid expectations of less aggressive Federal Reserve interest rate policy.

While investors cheered easing global inflationary pressures and growing expectations that the US Fed may adopt a more dovish outlook, profit-taking in artificial intelligence-linked technology stocks dominated Asia-Pacific trade overnight, even as Hong Kong bucked the regional trend on a fresh catalyst from China’s internet sector.

The Nikkei 225 fell 0.31%, and the ASX 200 slipped 0.17% while the Hang Seng Index advanced 0.78%, lifted by a JPMorgan upgrade on Tencent’s AI agent prospects in Weixin.

European markets closed mostly higher on Friday, with the FTSE 100 edging up 0.2% and the Euro Stoxx 50 rising 0.82% to a record high, as investors grew more confident that the central bankers would hold off on further rate increases.

US equity markets were closed on Friday for the Independence Day holiday.

The JSE is set for a flat-to-negative open this morning as global signals pull in opposing directions. Asian markets are trading mostly lower this morning with most global futures also pointing to a softer start.

The ASX 300 Metals and Mining Index is down 0.67%, providing a soft outlook for local resource counters – gold and platinum are both trading lower this morning, adding further pressure to gold miners and precious metals counters on the JSE.

However, Tencent surged 3.76% earlier this morning, driven by a JPMorgan upgrade following its Weixin AI agent launch, providing a constructive read-through for Naspers and Prosus and potentially helping offset pressure in other sectors on the local bourse.

The South African bourse closed higher on Friday with green screens all round, as investors assessed the US Federal Reserve’s outlook on interest rates amid improving domestic business sentiment.

The All Share Index gained 0.96% to close at 110 670 points, while the Top 40 advanced 1.00% to 102 289 points. Resources (+2.36%) led gains on the day, benefitting from strength in the Precious Metals and Mining Index (+2.92%).

Industrials (+0.46%) also ended firmer, while Financials (+0.34%) extended gains for the second consecutive session amid improving domestic business conditions.

Market sentiment was further supported by South Africa’s June PMI returning to expansionary territory and easing oil prices, which helped alleviate inflation concerns and provided a positive backdrop for local equities. Airtel Africa Gains 21%, Market Value Surges Near N20trn