Market Commentary

Global equity markets began the week on a firmer footing as investors returned to technology shares following last week's volatility, while easing concerns over energy prices supported broader market sentiment.

US equities advanced as investors rotated back into artificial intelligence (AI)-related technology stocks. The Nasdaq 100 gained 1.22%, the S&P 500 rose 0.64% and the Dow Jones Industrial Average added 218 points to close above 52 000.

Technology stocks rebounded, led by semiconductor and AI-related companies. Nvidia, Intel, Microsoft, Amazon, and Meta each gained around 2% as investors regained confidence in the AI investment theme. Comcast surged more than 20% after announcing plans to spin off NBCUniversal into a separate media company.

Sentiment was further supported by lower Treasury yields as easing energy prices reduced inflation concerns and prompted investors to moderate expectations for further Federal Reserve interest rate increases. The yield on the 10-year US Treasury note fell below 4.38%, while the US dollar index eased to 101.2.

European markets finished modestly higher, with the Euro STOXX 50 rising 0.20% and the STOXX Europe 600 adding 0.10%. Technology shares rebounded after last week's weakness, with ASML gaining 2.30% and Prosus rising 2.60%. Germany's DAX fell 0.33%, weighed down by Heidelberg Materials and Deutsche Post, while France's CAC 40 slipped 0.55% as luxury goods and financial stocks weakened ahead of central bank commentary.

The UK's FTSE 100 edged 0.21% lower as softer, precious metal prices weighed on mining shares. BT gained following a strategic alliance with Verizon, while Rolls-Royce and BP also finished higher.

Asian markets generally strengthened. Japan's Nikkei 225 rose 0.15% as investors returned to technology stocks, while retail sales increased 5.30% in May, the strongest growth since November 2023. Despite stronger economic data and expectations of further Bank of Japan rate increases, the yen remained close to its weakest level against the US dollar since 1986.

Chinese equities also advanced after the People's Bank of China introduced additional liquidity-support measures. The Shanghai Composite rose 1.15% as investors welcomed further policy support.

South African equities were mixed. The JSE All Share Index gained 0.04%, while the Industrial 25 Index rose 1.83%. Resource shares weakened as lower precious metal prices weighed on the sector, with the Resources 10 Index falling 2.37% and the Metals and Mining Index declining 2.93%. The rand weakened slightly, ending the session at R16.43 against the US dollar and at R21.77 and R18.77 to the pound and euro, respectively.

Commodity markets were mixed. Brent crude rose 1.49% to $73.06 per barrel but remained close to pre-conflict levels. Precious metals weakened, with gold falling 1.53%, silver declining 2.03% and platinum dropping 3.25%.