Global equities mixed as oil prices retreat

US markets gave a mixed performance on Monday, as losses among technology and energy companies offset gains elsewhere. The S&P 500 finished close to unchanged, while the Nasdaq shed 0.40% and the Dow Jones added 350 points. Apple lost 2.40% ahead of its results, with Microsoft, Micron Technology and Advanced Micro Devices also under pressure, falling 1.30%, 5.30% and 6%, respectively. ExxonMobil declined 3.70%, while Oracle dropped almost 8% after setting out plans for a $10 billion share sale and a further debt issue of a similar size. Gains among selected consumer-facing companies provided some support: Amazon rose 3.50%, Walmart added 3.10% and Tesla advanced 1.30%. Attention was also turning to the US midterm vote and labour-market figures expected later in the week.

Bond markets also moved, with the yield on the US 10-year Treasury falling to 4.89%, its lowest point since mid-September this year. The retreat in oil prices helped temper inflation concerns, while reports that President Donald Trump was prepared to give diplomatic discussions with Iran more time offered some support to sentiment. Crude oil fell by more than 7%, moving below $95 a barrel. The Federal Reserve made no change to interest rates last week, but market pricing continued to reflect an estimated 75% chance of a 25-basis-point increase in December.

European markets moved higher. The Euro Stoxx 600 gained 0.50%, reaching an eight-week high, while the Stoxx 50 rose by almost 1%. Travel and leisure stocks led sector gains, climbing more than 3%, followed by construction and materials, which advanced over 2%. Mining shares also strengthened, while the decline in oil prices weighed on energy companies, whose shares fell by more than 2%. The DAX added 0.60% to close at around 25 983, and the CAC 40 rose 1.10% to 8 047. The FTSE 100 also ended higher, with support from mining and banking stocks partly offsetting declines in the energy sector. Shell lost around 3% and BP fell 4.50%.

Trading across Asia lacked a common direction. Mainland Chinese shares rose, with the Shanghai Composite gaining 1.08% to 3 638, while Hong Kong's Hang Seng added around 0.40% to 23 393. The gains came against a weaker reading of China's October business surveys: the manufacturing PMI fell to 49.3 points from 50.1, and the non-manufacturing measure eased to 49.7 points from 50.2. Japan's Nikkei 225 slipped 0.33% to 63 082. Concerns surrounding semiconductor companies, including Kioxia and Screen Holdings, contributed to the weakness in Japanese technology shares.

The JSE participated in the broader improvement in equity markets. The All Share Index rose 1.77% to 109 527.80, while the Top 40 gained 2.04% to 101 438.67. Resources were the strongest of the main sectors, with the Resource 10 up 3.11% and the Metals and Mining Index advancing 4.36%. Industrials gained 2.23%, while financial shares rose 0.68%. The rand also firmed, trading at R16.61 against the US dollar, R22.26 against the pound and R18.58 against the euro. These represented gains of 0.60%, 0.47% and 0.31%, respectively. Domestic vehicle sales provided a further indicator of activity. October sales totalled 61 890 units, 10.40% more than a year earlier.

On the commodities front, Brent crude declined 7.65% to US$104.75 a barrel at 21h13 SAST. Precious metals moved in the opposite direction: at 21h54 SAST, gold rose 1.72% to US$3 941.99 an ounce, silver gained 2.86% to US$50.50 and platinum increased 0.85% to US$1 448.35.