Global markets mixed as oil prices ease and AI concerns persist

Global markets were mixed on Wednesday as investors awaited Nvidia’s earnings report for further clues on the strength of artificial intelligence (AI)-related demand and capital spending by hyperscalers. Lower oil prices also eased near-term inflation concerns, while investors continued to assess the outlook for US monetary policy and fiscal reform.

US equities closed mixed on Wednesday. The S&P 500 was broadly unchanged, the Nasdaq 100 edged higher, while the Dow Jones Industrial Average shed 113 points. Technology stocks mostly advanced, with Microsoft gaining 0.90%, Meta rising 1.10%, Micron adding 0.60% and AMD increasing 0.40%. Nvidia fell 1.60% ahead of its results, with forecasts pointing to almost doubled year-on-year revenue. Intuit declined 3.20% after its outlook fell short of the higher end of market expectations, while higher-than-expected PCE readings and resilient consumer spending reinforced expectations for a restrictive Federal Reserve.

According to Reuters European shares were muted on Wednesday, as investors assessed talks involving Iran and Oman over the Strait of Hormuz, while ‌sticky US inflation data marginally increased expectations of a Federal Reserve rate hike next month. The pan-European STOXX 600 closed 0.01% lower at 656.41 points, while EURO STOXX 50 Index advanced 0.23% to 6470.74. Germany’s DAX 40 rose 0.08% to 26 286, while France’s CAC 40 gained 0.27% to 8 462. London’s FTSE 100 was little changed as its six-session winning streak ended, with weaker energy shares offsetting gains elsewhere. Investors continued to monitor the impact of AI spending on technology companies and developments around energy prices and inflation.

Asian markets closed higher. China’s Shanghai Composite gained 0.59%, while the Shenzhen Component rose 0.69% as investors awaited further policy signals from the National People’s Congress Standing Committee meeting. Japan’s Nikkei 225 advanced 0.62% to 66 262, supported by gains in technology shares ahead of Nvidia’s results.

South African equities ended marginally lower on Wednesday. The FTSE/JSE All Share Index declined 0.01% to 116 813.45 points, while the Top 40 Index fell 0.04%. Financials lost 0.10%, while Resources declined 0.31% and Metals and Mining fell 0.27%. The rand weakened 0.22% against the US dollar to R15.96 and 0.05% against the euro to R18.60, while strengthening 0.13% against the British pound to R21.71.

Commodity markets were weaker. Brent crude oil declined 1.30% to $87.43 per barrel as investors continued to assess developments around energy flows and tensions in the Middle East. Gold fell 1.33% to $4 594.68 per ounce, while silver declined 0.76% to $68.12 per ounce and platinum fell 1.07% to $1 841.65 per ounce.