Earnings and geopolitics drive mixed global markets

European equity markets ended Tuesday on a mixed note, consolidating after Monday’s record highs as investors digested a range of earnings from the eurozone’s largest companies. The Euro STOXX 50 slipped to 6 050, while the STOXX 600 remained near its peak at around 621. Technology shares led gains, with SAP, Infineon and Adyen extending last week’s rebound following a software sell-off sparked by concerns that automation could curb demand for specialised services. Ferrari surged more than 10% after delivering results and guidance ahead of expectations, boosting other luxury brands in the sector.

Financial stocks, however, retreated as AXA, UniCredit and Allianz each fell over 2.50%. Germany’s DAX 40 edged slightly lower to 24 985.82, down by 0.12%, pausing after two days of gains as focus remained on transatlantic earnings reports.

In the UK, the FTSE 100 slipped 0.31%, underperforming continental peers amid disappointing results from major banks and energy firms. Barclays fell 2.50% on weak figures, while Standard Chartered dropped nearly 6% following the CFO’s departure; gains from AstraZeneca, up 2.50% on a robust profit outlook, partly offset the losses. Investors also monitored mounting political pressure on Prime Minister Keir Starmer over policy reversals and the debate surrounding Peter Mandelson’s US ambassador appointment.

In the US, equity markets extended recent gains as investors rotated into software stocks and value sectors. The Dow Jones Industrial Average rose 227 points (0.50%), supported by Disney and American Express, after hitting its third straight intraday record following last week’s breakthrough above 50 000. The S&P 500 edged up 0.02%, while the Nasdaq fell 0.09%. Dow Jones futures gained 0.58%.

Asian markets also advanced, lifted by Wall Street gains and Japan’s rally following Prime Minister Sanae Takaichi’s decisive election win. Investors remained cautious ahead of key US data releases, including retail sales, inflation figures and the delayed jobs report, which could influence the Federal Reserve’s (Fed) rate trajectory. The Nikkei surged 2.28%, the Shanghai Composite added 0.16%, and the Hang Seng rose 0.47%. 

Locally, the JSE All Share Index (ALSI) rose 0.51%, with the JSE Top 40 advancing 0.59% and the Resource 10 Index gaining 1.17%. The rand weakened, trading at R15.94 against the US dollar. 

Commodities fell, with gold trading at $5 028.81 per ounce, down 0.70%. Silver and platinum also retreated by 2.30% and 0.83% respectively, while Brent crude eased 0.23% to $68.88 per barrel.