The JSE followed weaker global markets on Tuesday as investors assessed the latest US job openings data and major tech company earnings. The local market dropped 0.39% for the day, influenced by data from the Bureau of Labor Statistics showing that US job openings fell short of expectations in September, hinting at a possible labour market slowdown. This raised investor interest ahead of the Federal Reserve’s rate decision on 7 November 2024. Meanwhile, the rand strengthened to R17.69/$ by 18h00.
In afternoon trading, US stocks showed mixed results as tech stocks boosted the market ahead of significant earnings and economic data releases. The Nasdaq 100 climbed 0.90%, approaching a record high, while the S&P 500 gained 0.30% and the Dow Jones fell 0.20%. Alphabet (NASDAQ:GOOGL), rising 2% before its earnings release, sparked optimism despite ongoing antitrust concerns. Trading Economics added that investors are closely watching Apple (NASDAQ:AAPL) (+0.20%) and AMD (NASDAQ:AMD) (+3.10%) earnings, as well as upcoming inflation and employment data, for market direction signals.
In Europe, markets ended lower on Tuesday, erasing earlier gains, with the STOXX 50 down 0.40% and the STOXX 600 falling 0.60%. Most sectors declined, except for modest gains in banking and mining stocks. Travel and leisure stocks fell 1.50%. Novartis shares dropped 2.60% despite an increase in full-year guidance due to higher third-quarter sales.
In Asia, Hong Kong's Hang Seng rose 0.50% on Tuesday, with most sectors advancing. Investors await details on potential stimulus measures from an upcoming Chinese leadership meeting, hoping for approval of additional government bonds, with Nomura projecting around CNY 1 trillion. Gains were tempered by caution ahead of China’s October Manufacturing PMI data release and concerns over a 27.10% year-on-year drop in Chinese industrial profits for September. Japan’s Nikkei increased 0.77% to close at 38 904, marking a second consecutive gain as investors considered the impact of the recent election. The Liberal Democratic Party lost its parliamentary majority, adding policy uncertainty and complicating the Bank of Japan’s (BoJ) interest rate plans. Japan’s unemployment rate edged down to 2.40% in September, the lowest in eight months. Investors are now awaiting the BoJ’s policy decision on Thursday, with the expectation of steady rates.
Brent crude held near $71.40 per barrel on Tuesday following a 6% drop the previous day, marking its largest daily decline in two years and hitting a four-week low. The decline followed reports that Israel’s recent strikes targeted military sites in Iran, sparing oil and nuclear facilities. Risk premiums eased further after Israeli Prime Minister Benjamin Netanyahu signalled openness to a temporary truce in Gaza for the limited release of hostages. Gold continued its rise to $2 770 per ounce on Tuesday, returning to record highs as soft labour data set the stage for key economic releases this week.
