On Wednesday, the FTSE/JSE All Share Index rose by over 1.50% to approximately 82 470, marking its second consecutive day of gains, largely driven by a nearly 4% increase in resource-linked sectors. Both financials and industrials also made solid advances, each up by more than 1%. Investors globally were focused on the Federal Reserve's (Fed) anticipated policy decision, seeking clues about future interest rate movements, while also keeping a close watch on the ongoing earnings season.
In the US, stocks followed a positive trend, with the S&P 500 climbing 1.20% and the Nasdaq rising 1.90%, while the Dow Jones added a more modest 60 points. Traders are absorbing fresh corporate earnings and awaiting the Federal Open Market Committee's (FOMC) monetary policy decision, which is expected to hint at a rate cut in September. The technology sector led the gains, with Nvidia (NASDAQ:NVDA) soaring nearly 8% after Morgan Stanley upgraded it to a top pick. AMD (NASDAQ:AMD) shares also jumped 7.50% following strong results, and Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM) rose 6% and 4.20%, respectively.
In the Eurozone, both the STOXX 50 and the STOXX 600 increased by 0.80%, extending their gains from the previous session. Traders were focused on corporate results while digesting key inflation data for the Eurozone and anticipating the Fed's monetary policy decision. Eurozone inflation unexpectedly rose to 2.60% from 2.50%, contrary to expectations of a decrease to 2.40%, though services inflation eased for the first time in three months.
In the UK, the FTSE 100 rose by more than 1% to trade above 8 300, reaching its highest level in over two months and recovering from previous losses. Investors were encouraged by positive corporate earnings while awaiting policy announcements from both the Fed and the Bank of England. The industrial metal mining sector led the advance, buoyed by favourable results from Rio Tinto (LON:RIO). HSBC (LON:HSBA) also performed strongly, rising 3% after declaring a second interim dividend, announcing a £3 billion share buyback, and reporting a largely flat performance for the first half of the year.
Asia - Japan’s Nikkei 225 Index surged 1.49% to close at 39 102, while the broader Topix Index gained 1.45% to 2 794, reversing earlier losses as the Bank of Japan (BoJ) raised its policy rate to around 0.25%, confirming market speculation. The central bank also announced a reduction in its monthly bond purchases to approximately 3 trillion yen by the first quarter of 2026. Furthermore, the BoJ indicated it would continue to raise rates and adjust monetary policy based on future economic and price developments.
Meanwhile in China, the Shanghai Composite jumped 2.06% to close at 2 939, and the Shenzhen Component rallied 3.37% to 8 754, rebounding sharply from near six-month lows. This rally followed a Politburo meeting where China’s leaders pledged to implement support measures and stabilise market confidence, emphasising boosting consumption over previous infrastructure-focused strategies.
In commodities, WTI crude futures soared up to 3.50% before settling around $76.80 per barrel, amid ongoing concerns about potential supply disruptions due to rising tensions in the Middle East. Gold prices climbed towards $2 420 per ounce, recovering from earlier losses as safe-haven demand increased amidst fears of escalating conflict in the region.
