Global markets rebound on risk appetite amid easing tariff concerns

Wall Street staged a rebound as buyers stepped in following Tuesday’s pullback, spurred in part by the Supreme Court’s sceptical stance on the Trump tariff case, which eased fears of imminent tariffs. That shift trimmed expectations that additional levies would be upheld, bolstering sentiment across risk assets. Economic data further supported the recovery: ADP private payrolls showed a modest gain of roughly 42 000, while the ISM services index climbed to its highest level in eight months, underscoring ongoing resilience in the US economy. According to Reuters, “technology and communication sectors led the advance, with Alphabet rising 2.40%, Tesla climbing 2.70%, Broadcom up 1.80%, and Meta gaining 1.40%,” as the recent AI-driven selloff took a pause.

European equities mirrored the North American recovery, buoyed by optimism around AI-driven growth and renewed risk appetite. The Eurozone’s STOXX 50 added 0.20% to 5 670 index points, while the broader STOXX 600 gained 0.30% to 572, led by technology and industrial shares.

In Asia, Chinese markets edged higher, with the Shanghai Composite up 0.23% and the Shenzhen Component rising 0.37%. Bargain hunting and positioning ahead of key economic releases lifted sentiment, despite a private survey showing services sector growth easing to a three-month low in October. Investors are eyeing China’s October trade and inflation data for clues on economic momentum amid ongoing Sino-US trade tensions. Premier Li Qiang reiterated that the economy is projected to surpass CNY 170 trillion within five years and committed to further opening China’s consumer market to global firms, reinforcing confidence in long-term growth.

The South African rand strengthened to around R17.40/$, recovering from recent one-month lows as firmer gold prices and a steadier dollar supported sentiment. The JSE tracked this improved risk tone, with the All Share index rising about 0.40% and the Top 40 up roughly 0.50%, led by resource and gold counters. However, a fresh PMI reading showed the private sector slipping back into contraction for the first time in seven months, highlighting persistent economic fragility. The South African Reserve Bank is expected to maintain rates at its November meeting, aiming to anchor inflation expectations near the lower 3% target range. Headline inflation edged up to 3.40% in September from 3.30% in August, slightly below forecasts, with price pressures expected to gradually build toward 2026.

Commodities saw a mixed performance. Brent crude steadied around $64.38 a barrel, dipping 0.10% as traders weighed softer demand signals against ongoing geopolitical risks and awaited clearer guidance on OPEC+ supply discipline. Gold extended its rebound, climbing about 0.97% to $3 968.69/oz, supported by safe-haven demand, bargain buying after recent dips, and intermittent dollar softness.

Overall, markets appear to be balancing optimism from resilient economic indicators and easing geopolitical concerns with caution over growth risks and monetary policy, creating a cautiously positive backdrop across global equities and commodities.