Global Markets Mixed on Renewed US-Iran Threat
Global market swings would be undermined by a shaky peace deal between the US and Iran, in addition to the Federal Reserve’s hawkish rate outlook.
Higher interest rate expectations and mixed headlines surrounding the peace deal in the Middle East remain the central driver for global markets, First National Bank (FNB) said in a brief, undermining risk appetite as renewed threats of military action and disruption to oil supplies cast a shadow over the week’s opening.
Reports hinted at some progress in the peace talks; most Asian markets have maintained a cautious stance, with the Hang Seng Index trading down 0.98%, amid broad declines in finance and technology, while the Nikkei 225 is up 1.62% as investors favour exporters amid a weaker yen.
The ASX 200 is edging 0.05% lower, pressured by losses in tech, mining, and energy. US equities ended the previous week with the NASDAQ up 1.91%, the S&P 500 gaining 1.08%, and the Dow Jones advancing 0.14%, supported by strength in technology but tempered by hawkish Federal Reserve signals.
In Europe, the FTSE 100 ended the week down 0.35% and the Euro Stoxx 50 lost 0.48% as investors maintained a cautious stance while monitoring news surrounding negotiations in the Middle East.
The JSE is set for a softer open this morning after the prior session’s decline as global equity futures edge lower and commodity signals turn mixed.
Asian markets are struggling for clear direction as investors continue to assess news surrounding the Middle Eastern peace talks and expectations for higher interest rates.
Tencent’s 1.68% fall is weighing on the outlook for Naspers and Prosus and a subdued performance from the Australian mining sector, where the ASX 300 Metals & Mining Index slipped 0.21%, is reflective of a sombre tone for local resource counters.
While gold’s advance offers some support to precious metals miners, platinum’s slide to a seven-month low points to ongoing pressure for PGM counters.
he local bourse ended the week in red territory after closing sharply lower on Friday, following weakness in global commodities as market concerns resurfaced after US-Iran talks scheduled for Friday in Geneva were cancelled.
The All Share Index and Top 40 dragged 2.08% and 2.52% to 112 611 points and 104 259 points, respectively. Resources (-8.37%) traded downwards throughout the day driven by weaker precious metal prices and a sharp sell-off in local miners such as Goldfields (-13.08%) and AngloGold Ashanti (-9.98%).
Industrials closed somewhat flat, while Financials (+1.02%) performed positively, extending gains from the previous session and ended the week in green territory.Wall Street Dips, European Stocks Rally as U.S Fed Keeps Rates
