Investors weigh rising oil prices against corporate earnings outlook

US equities ended mixed on Monday as investors looked ahead to a busy week of corporate earnings and inflation data, while rising oil prices and geopolitical tensions remained in focus. The Dow Jones Industrial Average gained 0.32% to close at 51 821.69, while the S&P 500 edged 0.08% lower to 7 805.50. The Nasdaq Composite fell by around 0.30%, reflecting continued weakness in technology shares. Micron Technology dropped 3% amid concerns about growing competition from China’s CXMT and its progress in chip development. Salesforce, by contrast, rose by more than 1% after Bank of America upgraded its rating on the stock, helping to lift the Dow.

The mixed session followed a positive week on Wall Street, where technology shares helped markets withstand higher oil prices and bond yields. Investors are now looking to corporate earnings for further support. FactSet estimates suggest that S&P 500 earnings could grow by 29.60% year on year in the third quarter. If realised, this would mark a fourth consecutive quarter of growth above 25%, supported largely by continued investment in artificial intelligence (AI) data centres.

European equities extended their gains on Monday, supported by optimism around global earnings growth and strength in banking stocks, despite elevated bond yields. The STOXX Europe 600 advanced 0.60% to 635, while the Euro STOXX 50 gained 0.40% to 6 169. UK’s FTSE 100 climbed 1%, following a 1.10% gain in the previous session, with Lloyds Banking Group rising by more than 2% and HSBC gaining close to 2%. Standard Chartered added 1.80%, while Barclays and NatWest rose 1.50% and 1.40%, respectively. Germany’s DAX rose 0.63% and France’s CAC 40 gained 0.38%.

Luxury stocks also performed well ahead of upcoming results, with LVMH adding 1.20% before its third-quarter revenue update and Hermès climbing by more than 2%. In contrast, ASML fell 1.50%, reflecting broader weakness among AI infrastructure-related shares.

Asian markets ended mixed on Monday as investors remained cautious ahead of the corporate earnings season, with concerns about AI-related spending and movements in oil prices adding to uncertainty. Technology shares came under pressure, where heavy losses among major chipmakers weighed on sentiment. The MSCI Asia-Pacific Index excluding Japan fell by around 0.50%. Hong Kong’s Hang Seng Index bucked the broader trend, edging 0.20% higher to 24 249.73, while the Shanghai Composite declined 0.43% to 3 797.24. Japan’s Nikkei 225 was closed for a public holiday.

South African equities ended Monday on a mixed note, although the JSE All Share Index gained 0.22% to 108 759.84 points. The modest advance came as the rand held firm around R16.54 against the US dollar and domestic bond yields remained steady. However, concerns over rising fuel costs and ongoing global market uncertainty continued to weigh on sentiment.

In corporate news, the JSE announced that sugar producer Tongaat Hulett will be delisted on 3 November 2026, ending its 74-year presence on the exchange following a prolonged trading suspension and business rescue proceedings.

Oil prices advanced by around 2%, with Brent crude rising 2.25% to $107 a barrel. Uncertainty surrounding the proposed energy ceasefire between Russia and Ukraine, together with comments by US President Donald Trump about potentially joining Saudi Arabia in military action against Iran-backed Houthi forces in Yemen, heightened concerns over escalating tensions in the Middle East.

Precious metals were largely weaker, with gold falling 0.52% to $4 171.87 an ounce and silver losing almost 1%. Platinum, however, edged 0.07% higher.