Global Equities Markets Down as Rising Energy Costs Stoke Selloffs
Global equities markets declined as rising energy costs dampened investor sentiment, stoking selloffs across the US and Europe, among others.
Surging oil prices and rising bond yields continued to fuel inflationary concerns across global markets, extending the equity sell-off ahead of today’s US consumer price data.
Wall Street ended lower for a fourth session as Middle East tensions drove wholesale energy costs higher, with the S&P 500 closing down 0.58%, the NASDAQ 0.65% and the Dow Jones 0.60%.
Europe followed as the European Central Bank raised rates by 25-basis points and lifted its inflation forecasts, leaving the Euro Stoxx 50 down 0.67% and the FTSE 100 0.57% lower.
That pressure has carried over into Asia-Pacific trade this morning, where expectations of tighter monetary policy are further constraining risk appetite.
The Hang Seng Index is trading down 0.85% as technology and financial stocks lag, while the Nikkei 225 has fallen 2.22% so far. Australia is also under pressure, with the ASX 200 trading 0.92% lower amid concerns that sticky inflation and elevated rates could slow the economy.
The Johannesburg Stock Exchange (JSE) is set for a weaker open this morning as firmer global futures contend with weakness across Asian markets following weak overnight cues from Wall Street.
After closing lower in the previous session, the local market may face continued pressure today, particularly with the S&P/ASX 300 Metals and Mining Index down 0.93% as falling iron ore and steel prices weigh on resource counters.
Stronger gold, however, should underpin gold miners, while platinum is little changed, tempering the outlook for PGM counters. Tencent’s 0.80% gain nevertheless offers a positive read-through for Naspers and Prosus, providing some support to the broader index.
The JSE closed lower on Thursday, with the All-Share Index declining 1.31% to 114 993 points, while the Top 40 shed 1.41% to 107 552 points.
Resources led the decline, falling 2.34% on a sharp drop in the Precious Metals and Mining Index (-2.21%). Financials and Industrials traded in line with the broader market, declining 1.14% and 0.33%, respectively.
Investors digested local data showing the current account balance deteriorated to a deficit of R205.5 billion in 2Q26, down from a surplus of R181.6 billion in the prior period, amid higher crude oil import costs. Global Equities Markets Dip as Money Moves Out of Risky Assets
