Following a turbulent weekend, the latest developments in US-Iran negotiations have stabilised market sentiment, with technology stocks driving Wall Street's rise. Explore the implications for global markets and commodities.
Image: Mandel Ngan / AFP
Following a turbulant weekend, developments over Tuesday night seems to have settled sentiment after the White House reported that diplomatic efforts were ongoing to revive United States (US)-Iran negotiations.
Bianca Botes, Managing Director at Citadel Global, said, "In addition, US earnings season has kicked off, bringing fundamentals back into play. Wall Street ended higher yesterday, bolstered largely by technology stocks."
Asian shares tracked Wall Street higher this morning, with technology stocks also leading the charge. The Korean KOSPI gained over 9% to reach fresh record highs.
In commodities, oil prices retreated, shedding over 1.3%, to trade at $97/barrel, while gold added 0.5% and is trading at $4,767/ounce. The US Dollar Index is weaker this morning.
The day kicked off with poor export data coming out of China.
Botes added, "We will also be keeping an eye on local gold and mining production data this morning and US ADP employment data and PPI later this afternoon. The rand is stronger this morning, taking its lead from global sentiment, and is trading at R16.40/$, R19.30/€ and R22.17/£."
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