Global markets mixed as investors eye Nvidia and political risks

Local markets slipped on Wednesday, with the FTSE/JSE All Share Index down 0.42% to 102 007 points as investors booked profits following strong August gains driven by easing US-China trade tensions and stimulus hopes. The rand weakened 0.50% to 17.72 against the US dollar amid lingering global uncertainties, while 10-year government bond yields rose slightly to 9.59%. ASP Isotopes debuted on the JSE under the code “ISO,” marking a key corporate development. Traders are also eyeing upcoming economic data, including producer inflation, credit, trade, and budget balance figures, for further market direction.

Wall Street edged higher on Wednesday ahead of Nvidia’s closely watched earnings, seen as a key test for the AI-driven rally. The S&P 500 and Nasdaq each rose 0.20%, with the S&P 500 setting a new record, while the Dow added 146 points. Nvidia shares were flat, though options trading suggested a potential $260 billion swing in its market value. Meanwhile, the US dollar strengthened modestly, supported by safe-haven demand amid global uncertainties and expectations of continued Federal Reserve policy tightening, gaining against major currencies including the euro and the rand as investors awaited key inflation and employment data.

European stocks ticked higher as investors weighed French political risks against anticipation for Nvidia’s earnings. France’s CAC 40 rose 0.40% after Tuesday’s sharp slide on concerns over Prime Minister Francois Bayrou’s government, while chipmakers, including ASM International, BE Semiconductor Industries and Infineon Technologies, gained alongside a 1.50% rise in ASML. The STOXX 50 and STOXX 600 also ended slightly higher, breaking a two-day losing streak.

Chinese shares retreated on Wednesday as investors took profits following a strong August rally. The pullback came despite earlier gains driven by easing US-China trade tensions, expectations of fresh stimulus, and supportive factors such as rising fund inflows, increased retail participation, and margin buying. The Shanghai Composite fell 1.76%, while the Shenzhen Component dropped 1.43%.

Commodities held steady, with gold trading at $1 950 an ounce, supported by geopolitical tensions, inflation worries, and safe-haven demand. Crude oil saw Brent at $85.50 per barrel and WTI at $81.20, as markets awaited the upcoming OPEC+ meeting for potential production changes, while supply concerns and steady demand kept prices relatively firm.