Markets steady as oil eases yield pressure, with US–China talks in focus

US equities advanced on Thursday, with the S&P 500 up just over 1%, the Nasdaq gaining 1.57% and the Dow Jones Industrial Average 0.61% higher, recovering losses from the previous two sessions as softer oil prices helped ease pressure on Treasury yields.

Technology, consumer discretionary and materials stocks led the gains, while consumer staples, financials and energy shares lagged. Chipmakers extended the recovery, with Intel, Advanced Micro Devices, Marvell, Seagate, and Lam Research each rising roughly 4%. Banks, sensitive to changes in credit conditions, also advanced, while major artificial intelligence (AI)-focused technology companies moved higher: Microsoft, Alphabet and Amazon were all up by close to 2%.

European shares rose as lower oil prices and a pause in the global bond sell-off improved investor sentiment after the US Federal Reserve interest rate hike. The pan-European STOXX 600 and the Euro STOXX 50 both gained 0.90%, with most regional markets ending higher.

In the UK, the Bank of England remained in focus after holding interest rates steady while warning that rising energy costs could add to inflationary pressures. The blue-chip FTSE 100 advanced 1.20%, recording its strongest daily gain in more than two months, while Germany’s DAX rose by 0.77% and France’s CAC 40 gained around 0.57%. Travel and technology stocks led the broader gains, each rising by about 0.80%, while energy shares edged lower as crude oil prices continued to retreat.

Asian markets were mixed, with Japan’s Nikkei rising 0.33%, supported by a weaker yen and gains in export-focused shares. In contrast, Hong Kong’s Hang Seng Index fell 0.52%, while the Shanghai Composite declined 0.40%. The weaker performance in China and Hong Kong reflected continued concerns about China’s growth outlook, as well as the potential impact of higher global borrowing costs on export demand and investment.

Investors adopted a more cautious stance ahead of a fresh round of high-level US–China discussions. US Treasury Secretary Scott Bessent is due to meet Chinese Vice Premier He Lifeng this coming weekend for final preparations ahead of the 24 September meeting between Presidents Donald Trump and Xi Jinping in the US. While the talks could help ease tensions between the world’s two largest economies, uncertainty remains around tariffs, sanctions and wider geopolitical risks, including developments involving Taiwan and the Middle East.

South African equity markets recovered modestly, with the JSE All Share Index rising 0.53% as investors turned their attention to the upcoming South African Reserve Bank interest rate decision following recent pressure from global monetary policy developments. The Top 40 added 0.54%, led by gains in Metals and Mining, which rose 1.89%, followed by Resources 10 at 1.62%. The rand also strengthened against major currencies, trading at R16.27 to the US dollar, R21.73 to the British pound and R18.67 to the euro.

Precious metals bucked the trend with gold surging over 2% to close at $4 351.14 per ounce, while silver led gains climbing 3.81% higher. Brent crude oil, however, declined by 1.17% trading at $104.59 per barrel.