Global markets rise as lower yields and oil prices ease pressure

US equities ended Monday higher as Treasury yields retreated, offering some relief from concerns about a potentially unfavourable macroeconomic environment. Technology shares led the advance, with the S&P 500 gaining 1.50%, the Nasdaq rising 2.30% to a record close of 27 122 and the Dow Jones Industrial Average adding 366 points. Market sentiment was also supported by US President Trump’s comments that he would be willing to meet Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly.

Lower borrowing costs strengthened expectations that large artificial intelligence (AI) infrastructure providers could maintain their record pace of debt issuance, benefitting chipmakers and related technology companies. Meta surged 11.40% amid signs that its new AI agent was gaining traction, fuelling optimism about future demand for semiconductors. AMD surged 9.90%, taking its market capitalisation above $1 trillion for the first time, while Intel climbed 12.10%.

European equities advanced, helped by a rally in heavyweight banking and technology shares, lower sovereign bond yields and weaker energy prices. The Euro STOXX 50 rose 1.30% to 6 318, while the STOXX Europe 600 gained 1% to 642. Germany’s DAX 40 climbed 1.10% to 25 575, France’s CAC 40 added 0.90% to 8 139 and the FTSE 100 increased 0.80%. Banks, industrials and technology companies led the gains, although lower oil prices weighed on energy stocks.

Asian markets were also firmer. The Shanghai Composite gained 0.97% to 3 949.9 and the Hang Seng Index rose 1.20% to 25 043, supported by technology and health technology shares. Japan’s stock market was closed on Monday and will remain closed till Wednesday for a series of national holidays, with trading scheduled to resume on Thursday.

South African markets were broadly steady, with the JSE All Share Index gaining 0.10% to 113 311.47. Financials rose 0.94% and industrials gained 0.49%, while resources fell 0.97%. The rand strengthened against the dollar, pound and euro, trading at around R16.25, R21.73 and R18.63, respectively. The 10-year government bond yield eased to around 8.78%.

Oil prices slipped below $95.50 a barrel on Monday, marking a fourth consecutive session of declines. The retreat followed reports that President Donald Trump had decided not to launch strikes against Yemen for the time being, while signalling a willingness to pursue diplomatic engagement with Iran. Reports indicate that he also rejected Saudi Arabia’s calls for military action against the Houthis. At the same time, crude exports from the Middle East have remained resilient.

Brent crude fell 3.32% to $100.42 a barrel, while precious metals declined: gold fell by 0.62% to trade at $4 349.93 an ounce, while silver and platinum fell 0.33% and 0.06%, respectively.