Global equities rise as earnings optimism offsets oil risks

US equities closed higher on Friday amid expectations of a strong corporate earnings season. The S&P 500 rose 0.60% and the Nasdaq 100 gained 0.50%, both approaching record highs, while the Dow Jones Industrial Average added 423 points. Technology shares advanced after reports that OpenAI expects annualised revenue to reach or exceed US$70 billion by year-end, supporting sentiment towards artificial intelligence (AI)-related companies. Alphabet gained 1%, Microsoft rose 2.40% and Amazon added 3.30%. Investors also looked ahead to quarterly results from major US banks, with stock-trading revenue expected to be a key contributor.

US year-ahead inflation expectations were reported at 4.70% in October, unchanged from September, while five-year expectations increased to 3.50% from 3.40%. The figures highlight continued concern about the inflation outlook. Meanwhile, crude oil prices fluctuated around US$91.50 a barrel during Friday’s session after Washington announced a temporary licence intended to allow Russian diesel supplies to reach global markets. However, disruption to shipping through the Strait of Hormuz continued to constrain vessel availability and push freight rates higher. Oil gained around 0.20% over the week.

European equities advanced as lower oil prices and bond yields supported sentiment. The STOXX 50 rose 0.80% and the STOXX Europe 600 gained 1%. Germany’s DAX added around 1.10%, France’s CAC 40 rose 0.90% and the UK’s FTSE 100 advanced approximately 1.10%. Technology-related shares benefited from improved AI sentiment, while telecom stocks weakened after SpaceX agreed to acquire a nationwide portfolio of low-band spectrum, raising competition concerns for established operators. European earnings expectations also improved ahead of the reporting season, with 3Q26 earnings growth forecast at 21%, up from 19.40% a week earlier.

Asian markets were mixed. Hong Kong’s Hang Seng Index climbed 1.80% as investors bought recently weakened shares, with Xiaomi surging 9.70% following strong vehicle pre-orders. Japan’s Nikkei 225 ended virtually unchanged, while mainland Chinese equities were broadly steady as investors turned to China–EU trade discussions. Concerns about AI valuations continued to weigh on some Chinese technology shares. For the week, the Shanghai Composite declined 0.74%.

South African equities advanced on Friday. The JSE All Share Index rose 1.32% to 108 524.77, while the JSE Top 40 gained 1.37%. Resources increased 1.73%, Metals and Mining climbed 1.76% and Financials advanced 1.18%. The rand strengthened against the major currencies, trading at R16.53 to the US dollar, R21.87 to the British pound and R18.50 to the euro. South Africa’s 10-year government bond yield hovered around 9% as investors monitored Middle East developments and the inflation outlook. Higher fuel prices and the risk of second-round inflation effects remain concerns for the South African Reserve Bank.

At 17h43 SAST, Brent crude rose 0.48% to US$104.78 a barrel. At 18h23 SAST, gold gained 1.34% to $4 189.28 an ounce, silver advanced 2.54% to $60.85 and platinum rose 3.08% to $1 692.60.