US stocks advanced on Wednesday, lifted by strong corporate earnings and a major announcement from Apple. The S&P 500 rose 0.70%, the Dow added 82 points, and the Nasdaq gained 1.20%, driven largely by a 5% jump in Apple shares after the company unveiled a $100 billion expansion of its US manufacturing investment. McDonald’s rose 3% after surpassing earnings expectations, while Arista Networks soared 17.40% on an upbeat revenue forecast. However, not all earnings reports impressed—shares of AMD, Snap, and Super Micro Computer fell sharply following disappointing results. Investor optimism was also bolstered by growing expectations of a Federal Reserve rate cut in September, with the probability rising above 93% following the release of weaker labour market data.

European stocks ended mostly higher on Wednesday, holding onto gains from earlier in the week as investors weighed the potential impact of US tariffs on regional growth and corporate performance. The Eurozone’s STOXX 50 edged up 0.20% to 2 630, while the broader STOXX 600 slipped 0.10% to 541, dragged down by weakness in the pharmaceutical sector. Drugmakers tumbled after US President Trump reiterated plans to impose a 250% tariff on pharmaceutical imports, in line with his ongoing push to lower drug prices. According to Trading Economics, Sanofi and Merck each fell more than 2%, while Roche, AstraZeneca, and Novartis—based outside the Eurozone—dropped between 1% and 3.50%. Adding to the pressure, disappointing earnings sent Bayer plunging nearly 10%, while Novo Nordisk sank 5.50% on its weakest growth in four years. In contrast, financials offered support, with BBVA and Munich Re climbing more than 1.50%, and Airbus rising 1.50%.

Optimism over progress in US–China trade talks lifted Chinese markets for a third consecutive session on Wednesday. Hopes were buoyed after President Donald Trump said a deal to extend the current trade truce—set to expire on 12 August—was “very close,” adding that he plans to meet with Chinese President Xi Jinping once negotiations conclude, likely before year-end. Meanwhile, investors are awaiting key trade and inflation data from China to assess the impact of shifting global trade dynamics on the domestic economy. The Shanghai Composite rose 0.45% to 3 634, while the Shenzhen Component climbed 0.64% to 11 178.

Elsewhere in Asia, markets ended mixed as global trade developments continued to drive sentiment. Japan’s Nikkei 225 rose 0.30% on tech strength, Australia’s ASX 200 edged up 0.20% on mining gains, while Hong Kong’s Hang Seng slipped 0.40%, weighed down by weakness in property stocks.

The rand strengthened to around R17.80/$ —its strongest level since 25 July —buoyed by a softer dollar amid rising expectations of Federal Reserve rate cuts and ongoing trade uncertainties. Attention now turns to whether South Africa can secure more favourable trade terms with the US before 8 August, when a new 30% tariff on a wide range of exports kicks in—making it the highest among sub-Saharan African countries. The US, South Africa’s third-largest trading partner, accounts for about 7.50% of total trade, with agricultural exports like wine and citrus particularly at risk. Despite efforts including offers to import US liquefied natural gas and investment commitments, Washington has yet to respond—raising concerns over strained diplomatic and economic ties. Meanwhile, the local bourse rallied, with the FTSE/JSE All Share Index jumping approximately 0.48% to close at 100 152.77 on Wednesday. 

Commodity markets showed mixed results, driven by several key factors. Brent crude oil fell 1.10% to $66.89 per barrel and WTI dropped 1.20% to $64.35 amid rising OPEC+ output and geopolitical uncertainties, raising concerns over oversupply. Gold edged up 0.41% to $3 443.90 per ounce on expectations of a potential Federal Reserve rate cut, boosting its appeal as a safe haven.