Global equities rebound as risk appetite improves

Market Commentary

US stocks rebounded on Thursday, with the S&P 500 climbing about 1%, the Nasdaq 100 increasing almost 2% and the Dow adding roughly 72 points, led by gains in technology names and optimism about a US-Iran interim agreement. Investors welcomed the deal, which includes reopening the Strait of Hormuz, as a step toward de‑escalation and reducing the prospect of volatile oil prices.

Semiconductor players advanced after President Donald Trump said Intel would manufacture chips for Apple in the US. Intel jumped 10.60%, while Nvidia and Micron rose about 2.80% and 8.50%, respectively. Airline stocks also outperformed, with American Airlines up about 3.30%.

The dollar index strengthened to 100.6, its highest level since May 2025, as markets increased expectations for higher US interest rates later this year. The yield on the US 10-year Treasury note eased to 4.44%, partially reversing gains from the previous session.

European markets were mixed. The Euro STOXX 50 rose 0.50% to a record high of 6 331, while the STOXX Europe 600 fell 0.40% to 637. Lower energy prices following the US-Iran agreement reduced concerns about further European Central Bank (ECB) rate hikes. Banks and industrials performed well, with UniCredit, Intesa Sanpaolo, Airbus, and Safran posting gains, while SAP declined 4.70%.

The FTSE 100 underperformed, falling 1.12% as weaker commodity prices weighed on mining and energy shares. Shell and BP lost more than 1.50%, while Rio Tinto, Glencore and Anglo American also declined. The Bank of England (BoE) voted 7-2 to keep interest rates unchanged at 3.75%.

Asian markets finished mixed on Thursday, even as major indices in Japan and South Korea reached record highs. Japan’s Nikkei 225 led the gains, jumping 1.65%, while South Korea’s benchmark also closed at an all-time peak. By contrast, Chinese markets were softer: the Shanghai Composite slipped 0.43% and the Hang Seng fell nearly 2%. The Shenzhen Component rose 0.94%, supported by strength in technology stocks and financials and tech generally drove much of the positive momentum across the region. In Japan, annual inflation ticked up to 1.50% in May from 1.40% in April.

South African markets closed lower as broad declines weighed on sentiment. The JSE All Share Index fell 0.89% to 114 997.71, while the Top 40 slipped 1% to 106 955.68. Resource and mining stocks led the weakness after commodity markets adjusted to the post‑conflict US-Iran backdrop. The Resources sector dropped 3.62% and Metals and Mining plunged just over 4%. By contrast, Industrials and Financials provided pockets of support, rising 0.39% and 0.44% respectively, while the SA Property Index inched 0.28% higher.

The rand weakened against the US dollar and euro, trading at R16.45 and R18.86, respectively. However, it was marginally firmer to the pound at R21.74.

Commodities were broadly softer. Brent crude fell 2.61% to $77.47 a barrel, while precious metals came under pressure as gold slipped 0.80% to $4 223.95 an ounce and silver declined almost 3%.