The JSE All Share Index closed slightly lower at 87 077 on Monday, ending a three-day streak of gains. Investor focus shifted to the upcoming US presidential election, while ongoing geopolitical tensions in the Middle East kept markets on edge. Attention also turned to the corporate earnings season, with traders awaiting further reports from major global companies throughout the week. Domestically, South Africa's consumer CPI data is expected later in the week, adding to the market’s cautious tone. Additionally, investors remained wary ahead of South Africa’s mid-term budget review later this month, as they assess potential fiscal policy adjustments.
In the US, stocks fluctuated between gains and losses on Monday, following a strong weekly performance from both the S&P 500 and the Dow, marking their best streaks of the year. Traders are gearing up for a busy week, with earnings reports expected from major corporations including Tesla (NASDAQ:TSLA), Boeing (NYSE:BA), Coca-Cola (NYSE:KO), 3M (NYSE:MMM), IBM (NYSE:IBM), General Motors (NYSE:GM), UPS (NYSE:UPS), and Verizon (NYSE:VZ). The consumer discretionary sector was the worst performer, followed by real estate, while the energy sector outperformed. Among the megacaps, Microsoft (NASDAQ:MSFT) (-0.50%), Amazon (NASDAQ:AMZN) (-1.10%), Meta (NASDAQ:META) (-0.50%), and Tesla (NASDAQ:TSLA) (-1.90%) saw declines, while Apple (NASDAQ:AAPL) traded flat and Nvidia (NASDAQ:NVDA) (+0.90%) and Alphabet (NASDAQ:GOOGL) (+0.20%) posted modest gains. Notably, Boeing’s (NYSE:BA) shares surged by 5% following a potential agreement on a pay raise with its unions, which could bring an end to the strike that has caused production delays.
The FTSE 100 index in the UK saw a slight increase, reaching 8 380 on Monday, maintaining gains from the previous week. The index was supported by strong performances from commodity producers, as markets continued to assess the broader economic backdrop for insights into credit conditions. Fresnillo (LON:FRES) led the charge with a 4.40% rise, buoyed by solid momentum in bullion prices, with gold hitting record highs and silver climbing to a 12-year peak. Base metal miners also saw gains, benefiting from the larger-than-expected rate cut by the People’s Bank of China (PBoC) to its loan prime rates, with Antofagasta (LON:ANTO), Glencore (LON:GLEN), and Endeavour rising nearly 2%, while Rio Tinto (LON:RIO) and Anglo American (LON:AAL) each advanced by close to 1%.
Meanwhile, markets in the Eurozone were more subdued, with the Stoxx 50 dropping 0.90% and the Stoxx 600 falling 0.70%, as investor sentiment remained cautious amid escalating Middle Eastern tensions. Most major sectors closed lower, with insurance stocks leading the declines, down by 0.90%, while oil and gas stocks gained 1.20%. In corporate news, investors were closely watching German software company SAP (-0.90%), ahead of its third-quarter earnings release, particularly following disappointing results from ASML (AS:ASML) last week, which had a negative impact on tech stocks.
In Asia, Japan’s Nikkei 225 Index edged down 0.070% to close at 38 955, while the broader Topix Index lost 0.34% to 2 680, marking their lowest intraday levels in over two weeks. The declines were driven by political uncertainty ahead of Japan’s general election this weekend, along with a slight rebound in the yen, which had prompted verbal interventions from Japanese authorities after the currency slid to 150 per dollar last week. Despite this, optimism surrounding the earnings season provided some support to the market. Bank stocks led the declines, with Mitsubishi UFJ (TYO:8306) (-1.90%), Sumitomo Mitsui (TYO:8316) (-1.90%), and Mizuho Financial (TYO:8411) (-0.80%) all posting losses.
In China, however, stocks performed more positively, with the Shanghai Composite rising 0.20% to 3 268 and the Shenzhen Component gaining 1.09% to 10 471. This followed gains from the previous session after the People’s Bank of China announced a 25 basis point cut to both its one- and five-year loan prime rates, part of a broader monetary stimulus package aimed at combating the slowdown in the world’s second-largest economy.
In commodities, WTI crude oil futures saw a more than 1% rise, surpassing $70 per barrel on Monday, following last week's 8.40% drop. This was driven by concerns over supply disruptions from Middle Eastern tensions and the economic stimulus measures introduced by China, the world’s largest oil importer. Gold, meanwhile, surged to a new record high of around $2 730 per ounce, bolstered by increased demand for safe-haven assets amid global uncertainties.
