Market Commentary

US equities ended the week on a positive note as strong earnings from major technology companies and renewed optimism around artificial intelligence (AI) lifted investor sentiment. On Friday, the S&P 500 gained 0.70%, the Nasdaq 100 advanced 0.60% and the Dow Jones Industrial Average added 277 points. The rally helped the Dow and the S&P 500 finish the week around 1% higher, while the Nasdaq gained approximately 1.60%. However, the monthly picture was less encouraging. The S&P 500 slipped 0.10% in July and the Nasdaq fell 3.20%, while the Dow outperformed, edging 0.30% higher to record its fourth consecutive monthly gain.

Technology stocks led the gains after Amazon surged 15.30% on stronger cloud growth, while optimism surrounding the AI trade boosted Alphabet by 6.90%, Microsoft by 3%, and Meta by 3.30%. Semiconductor and software shares also benefited from expectations of continued AI-related investment. These gains outweighed weakness in Apple, which fell 7.30% after chip shortages increased costs and reduced June-quarter production, while Netflix declined 2%, Eli Lilly lost 0.60%, and ExxonMobil eased 1%.

European markets ended mixed as corporate earnings largely offset uncertainty surrounding the interest rate outlook. The STOXX Europe 600 slipped 0.10%, while the Euro STOXX 50 gained 0.20%. Germany's DAX 40 edged 0.07% higher, supported by gains in Infineon, Hochtief and RWE, while France's CAC 40 rose 0.46% as TP, Saint-Gobain and ENGIE advanced. London's FTSE 100 edged lower as weakness in consumer goods, healthcare and banking shares offset gains in NatWest, BP and Shell.

Asian markets delivered a mixed performance. China's Shanghai Composite gained 0.72% and the Shenzhen Component rose 2.21% as semiconductor and AI-related shares rebounded following strong earnings from Microsoft and Amazon. Japan's Nikkei 225 jumped 4.03%, extending recent gains as Advantest, SoftBank Group, Lasertec and other technology shares rallied after stronger AI-related demand.

South Africa's trade surplus widened to R17.75 billion in June from a revised R4.44 billion in May as exports increased by 4.30% and imports declined by 2.90%. However, local equities ended lower on Friday as weakness in resource and industrial shares outweighed gains in financials. The FTSE/JSE All Share Index declined 0.34% to 111 493.10 points, while the Top 40 Index eased 0.48% to 103 257.69. Resource shares remained under pressure, with the Resources 10 Index falling 1.41% and the Metals and Mining Index declining 2.11%. Industrials lost 0.97%, while financials gained 1.04%. The rand weakened against the major currencies, depreciating 0.15% against the US dollar to R16.53, 0.26% against the British pound to R22.28, and 0.18% against the euro to R19.05.

Commodity markets delivered mixed performances. Crude oil prices rose 1% on Friday to around $85 a barrel, ending July more than 20% higher. The monthly gain, the strongest since March, was driven by escalating geopolitical tensions and mounting concerns over global oil supplies. Precious metals, however, came under pressure. Gold declined 1.35% to $4 046.77 per ounce and silver fell 2.29% to $57.63 per ounce, while platinum bucked the trend, edging 0.19% higher to $1 663.15 per ounce.