Global Equities Markets Mixed As Investors Trim AI Stocks Holdings

Global Equities Markets Mixed as Investors Trim AI Stocks Holdings

Global equities markets are heading for a mixed close this week amid easing tensions in the Middle East, while negative sentiment amplified AI stock sell-offs. 

A fragile easing of hostilities in the Middle East continued to dominate the headlines as investors assessed mixed signals from ongoing US-Iran negotiations, prompting a cautious risk backdrop that shaped global equity moves.

Wall Street closed mixed, with the Dow Jones up 1.73% at a record high as healthcare and financials outperformed, First National Bank (FNB) said on Friday.

The S&P 500 added 0.41% while the NASDAQ slipped 0.09% as weak results from Broadcom (-12.59%) pressured AI-related shares.

European markets found support from a pullback in oil prices and a formalised ceasefire between Israel and Lebanon, allowing the Euro Stoxx 50 to close up 0.82% and the FTSE 100 to gain 0.27%.

In Asia, regional bourses are trading broadly lower, with the Nikkei 225 down 1.66%, the Hang Seng Index off 0.81% and the ASX 200 down 0.69%, all reflecting profit-taking in technology stocks with market participants remaining sensitive to developments in the Middle East.

South African bourse, the Johannesburg Stock Exchange (JSE), is poised for a weaker open on Friday, likely extending yesterday’s soft performance as investors maintain a cautious stance amid conflicting headlines surrounding developments in the Middle East.

As a result, Asian markets are trading mostly lower, with global futures also trading in the red. Tencent is down 0.44%, suggesting a negative lead for Naspers and Prosus.

In addition, a 2.30% decline in the S&P/ASX 300 Metals & Mining Index points to a softer start for local resource counters. Lower gold and platinum prices are likely to weigh on precious metal miners, while a modest rise in Brent crude may offer limited support to energy shares.

The JSE closed broadly lower on Thursday, with the All-Share Index slipping 0.47% and the Top 40 falling 0.59%, marking a second consecutive day of declines.  The main drag came from Resources and Industrials, which dropped 0.93% and 0.87% respectively, while Financials was the lone bright spot, edging up 0.29%.

In the industrials space, Naspers was the single largest drag on the Top 40, falling 2.21%, while Sasol (-3.00%) posted the steepest individual decline, weighed down by a sharp drop in oil prices after the US announced a ceasefire between Israel and Lebanon, which unwound the geopolitical risk premium that had supported crude.

Financials held up, supported by the relatively stable domestic rate outlook following the South African Reserve Bank Governor Kganyago’s comments that core inflation (ex-fuel) is expected to peak only in early 2027. GCR Affirms MTN Nigeria AAA Ratings, Outlook Stable