Global Markets Mixed as Hawkish Talks Rattle US Mega Stocks
Global equities markets were mixed as a hawkish statement from a Fed official rattled mega stocks and tech names, amid narrow moves in European indices.
US equities closed mixed on Wednesday, with the Dow Jones up 0.49% to a third consecutive record close, while the S&P 500 edged down 0.17% and the NASDAQ fell 0.83%.
The mixed performance was influenced by a hawkish comment from Minneapolis Federal Reserve President Neel Kashkari, suggesting it may be time to begin slowly raising rates, which rattled mega-cap and technology names.
Top AI and tech stocks dived, dragging key performance indicators lower. Market analysts reported that European equities closed in a narrow range, with the FTSE 100 barely changed, the Euro Stoxx 50 down 0.15%, and the DAX slipping 0.29%.
This happened as market data indicated that early gains – driven by strong earnings from Next and Glencore were erased by the close.
Momentum had built on optimism over a reportedly imminent interim Strait of Hormuz shipping accord between the US and Iran – with the market quickly pricing in Middle East peace.
Elsewhere, risk sentiment in Asia-Pacific turned cautious overnight as concerns over slowing regional growth and a firmer US dollar weighed on equity markets.
The Hang Seng Index fell 1.79%, dragged lower by technology and consumer names, while the Nikkei 225 declined 1.07% as yen dynamics and export-sector caution pressured Japanese equities.
The ASX 200 bucked the regional trend, rising 0.47%, supported by a sharply better-than-expected Australian trade surplus for June.
In South Africa, the Johannesburg Stock Exchange (JSE) is set for a cautious open this morning as mixed signals from Asian markets and broadly positive futures provide conflicting signals, said stockbroking and portfolio management subsidiary of First National Bank (FNB) in a brief.
Tencent has declined 2.15% in Hong Kong trade, a move that is likely to weigh on Naspers and Prosus at the open given their substantial exposure to the Chinese technology group.
However, the ASX 200 is trading firmer, lending a degree of support to resource counters on the JSE. Gold is trading higher, providing a constructive backdrop for gold miners, while platinum’s firm advance offers additional support to precious metals counters on the local bourse.
The JSE closed firmly higher on Wednesday amid a jump in the gold price as the prospect of an interim deal to reopen the Strait of Hormuz eased concerns about the outlook for US inflation and reduced the odds of the Federal Reserve raising interest rates.
Resources (+5.46%) dominated trading after a sharp rise in precious-metal prices, with the strength in bullion prices translating directly into gains for South African gold miners – Gold Fields (+8.75%), AngloGold Ashanti (+8.19%) and Harmony Gold (+7.30%) – while the Precious Metals and Mining Index rose 6.50%.
The Financials (-0.92%) and Industrial (-0.81%) sectors weighed on broader market participation, with investors rotating into resource stocks. By the closing bell, the All Share Index gained 1.01% at 115 416 points, and the Top 40 advanced 1.11% at 107 377 points.
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