US tech rally boosts markets

US equities advanced on Monday, building on recent record highs with continued support from the technology sector, as investors weighed the outlook for interest rates. The S&P 500 and Nasdaq 100 each rose by over 0.50%, while the Dow Jones Industrial Average added approximately 100 points. Nvidia shares jumped nearly 4% following news that the company plans to invest up to $100 billion in OpenAI to support the development of new data centres and computing infrastructure.

The South African rand remained largely unchanged, trading at 17.33 to the US dollar by 08h25 GMT - broadly in line with Friday’s close - as market participants awaited a series of domestic data releases expected later this week, which could shed light on the health of the country’s economy. The currency has shown relative stability following last week’s decision by the South African Reserve Bank to keep its main lending rate on hold at 7%, maintaining a cautious stance even as inflation appears to be under control. The Johannesburg Stock Exchange’s Top-40 index showed little movement on the day. Meanwhile, the yield on the benchmark 2035 government bond eased by 3.5 basis points to 9.13%, reflecting modest strength in the bond.

In London, the FTSE 100 finished marginally higher at 9 227, as investors remained cautious ahead of key economic indicators due later in the week, including PMI surveys and speeches from officials at both the Bank of England and the US Federal Reserve, which could offer further clarity on future policy direction. On the corporate front, gold miner Endeavour rose 6.90%, while precious metals group Fresnillo gained 4.60%, supported by record highs in both gold and silver prices.

European markets edged lower after a strong performance the previous week, with investors still assessing the global rate outlook and geopolitical uncertainties. The Eurozone’s STOXX 50 slipped 0.30% to 5 445, while the broader STOXX 600 declined 0.10% to 554. Automotive stocks were among the weakest performers, led by Porsche, which saw its shares fall 7.20% after the company downgraded its profit forecast and delayed the launch of a new electric vehicle due to weaker-than-expected demand.

In Asia, Japan’s Nikkei 225 Index climbed 0.99% to close at 45 494, while the broader Topix Index rose 0.49% to 3 163, bouncing back from previous losses and echoing the upbeat momentum from Wall Street. The gains followed the US Federal Reserve’s anticipated quarter-point interest rate cut - its first since December - alongside guidance suggesting two additional reductions later this year.

Chinese equities also advanced, with the Shanghai Composite gaining 0.22% to 3 829 and the Shenzhen Component up 0.67% to 13 158, snapping a two-day losing streak. Sentiment improved amid reports of progress in US-China discussions, as President Donald Trump stated that he and President Xi Jinping had made progress on a TikTok agreement and plan to meet in six weeks’ time in South Korea to discuss trade, illicit drug issues, and the ongoing war in Ukraine.

In commodities, WTI crude oil prices reversed early gains to trade around $62 per barrel, with markets balancing geopolitical tensions against concerns over tariffs and slowing global demand. Meanwhile, gold surged to a record high of $3 728 per ounce, supported by growing expectations of further US interest rate cuts and strong safe-haven demand amid ongoing political uncertainty.