Global markets mixed on tech weakness and commodity gains

US equities retreated on Wednesday, driven by sustained pressure in the tech space. Semiconductor shares were particularly hard-hit after AMD fell on a weaker-than-expected outlook, dragging down peers including Micron, Broadcom, Lam Research and Applied Materials. Software stocks also came under pressure as investors reassessed competitive and pricing risks tied to the rapid adoption of AI. By contrast, defensive and value-oriented sectors provided some support, with healthcare outperforming after Amgen posted stronger-than-expected earnings. Macro signals offered little relief, however, as the ADP report showed private payroll growth slowed sharply in January, reinforcing the rotation away from high-growth technology names.

European equities advanced, supported by signs of easing inflation across the Eurozone. January’s CPI slowed to 1.70%, comfortably below the European Central Bank’s target, fueling speculation that policymakers could resume rate cuts paused in June. Sector performance was mixed, with technology and media shares under pressure amid concerns over AI-driven disruption to traditional business models. At the stock level, Novo Nordisk fell sharply on a weaker-than-expected outlook for its weight-loss franchise, Credit Agricole slipped after a fourth-quarter profit miss, UBS declined despite a 56% jump in net profit, and Santander retreated following its acquisition of US regional lender Webster Financial.

Asian markets broadly retreated as selling in global technology and AI-linked stocks spilled over from Wall Street. Japan and South Korea led regional losses, while equities in China, Hong Kong, Australia and Taiwan also weakened. Pressure remained concentrated in high-growth technology and software names, reflecting investor caution over valuations, elevated capital spending, and the disruptive potential of AI, which continued to drive rotation into more defensive sectors.

South African equities traded firmer, underpinned by a stronger rand and tentative signs of stabilising domestic conditions. The FTSE/JSE All Share Index rose around 0.25%, while the Top 40 gained roughly 0.30%, with broad-based sector support. Currency strength helped ease inflation concerns and bolstered interest-rate sensitive and consumer-facing stocks. PMI data showing private-sector activity had halted its contraction added to the constructive tone, while the rand’s appreciation fed through to lower fuel prices, offering relief to households and easing cost pressures.

In commodities, gold and oil showed renewed volatility on Wednesday. Gold rebounded to $5 020/oz, recovering part of last week’s losses, while Brent crude rose to $68.95/bbl and WTI climbed to $66.40/bbl, reflecting a combination of safe-haven flows and short-term geopolitical risk premiums.