Markets higher ahead of US inflation data

Global markets regained some momentum on Thursday, with Wall Street and major international indices rebounding ahead of the closely watched US Consumer Price Index (CPI) report. The S&P 500 climbed 0.30% and the Nasdaq advanced 0.60%, recovering from a muted open as investors weighed a busy corporate earnings slate and fresh geopolitical developments. The Dow Jones Industrial Average traded little changed, reflecting cautious sentiment across the market.

Energy stocks were among the session’s standout performers, supported by a rally in oil prices after President Donald Trump announced sanctions on one of Russia’s major oil producers. The move reignited geopolitical tensions, lifting crude benchmarks and energy-related shares. Broader market sentiment, however, remained tempered by renewed trade concerns following reports that the White House may impose new restrictions on exports of American software to China.

In Europe, equities posted moderate gains as earnings optimism outweighed lingering macroeconomic uncertainty. The STOXX 50 added 0.60%, while the pan-European STOXX 600 rose 0.40%. French luxury group Kering jumped nearly 9% after reporting signs of recovery across its brands, including Gucci, bolstering confidence in the region’s consumer discretionary sector.

Asian markets also rebounded, led by Hong Kong’s Hang Seng Index, which advanced 0.70% to close at 25 968. The index recovered from earlier losses as risk appetite improved on news that the United States and China will hold another round of high-level trade discussions during the 47th ASEAN Summit this weekend. The meeting rekindled hopes of progress on bilateral relations after a week of renewed tensions. Investors also awaited the outcome of China’s fourth plenum, expected to outline the government’s forthcoming economic and policy priorities. Reports that Washington could introduce broad export restrictions on China in response to its rare earth policies were largely brushed aside.

Locally, the South African rand strengthened after a brief pullback earlier in the week, as traders remained focused on the potential removal of South Africa from the Financial Action Task Force’s (FATF) “grey” list. The JSE followed the global trend higher, advancing 1.75% as investor sentiment improved alongside a firmer currency and stronger commodity prices.

In commodities, oil markets surged, with West Texas Intermediate (WTI) crude futures rising more than 5% to surpass $61 per barrel, the highest level in two weeks after the US sanctions announcement. Meanwhile, gold prices climbed back to around $4 120 per ounce, ending a two-day slide. The precious metal benefited from renewed safe-haven demand amid ongoing trade and geopolitical uncertainties, even as President Trump confirmed plans to meet with Chinese President Xi Jinping in the near future.