European Markets Mixed as Uncertainty Dampens Risk Appetite
European markets delivered mixed performance as political uncertainties and geopolitical pressure constrained risk appetite ahead of the European Central Bank decision later this week.
Elevated oil prices continue to keep inflation and interest rate risks at the centre of markets amid recent strikes in the US and Iran, while renewed trade frictions add pressure.
The Euro Stoxx 50 closed 0.17% higher as semiconductor strength offset insurance losses, while the FTSE 100 lost 0.08%, with energy gains only partially offset consumer weakness. Asian trading is subdued this morning as caution continues to spread across the region.
The Hang Seng Index is down 0.27% as investors digest the latest balance of trade figures, and the Nikkei slipped marginally lower by 0.02% as better-than-expected GDP readings helped to offset some selling pressure. Australia’s ASX 200 is down 0.90% so far.
The Johannesburg Stock Exchange (JSE) is likely to face pressure at the open this morning, given the generally subdued tone across global markets, with the futures market also pointing to downside potential.
Tencent is down 0.41%, providing a modestly negative read-through for Naspers and Prosus. Resources may also struggle today, with the S&P/ASX 300 Metals and Mining Index down 0.88%, despite a recovery in most precious metals.
The JSE closed higher on Monday, with the All Share Index gaining 0.23% to 116 989 points as the Resources sector led the market higher, advancing 1.77%, while Financials (-0.28%) and Industrials (-0.73%) ended weaker.
The Top 40 gained 0.31% to 109 607 points. Investors continued to monitor developments in the Middle East after fresh attacks involving US and Iranian-linked vessels around the Strait of Hormuz. Local investors now look ahead to this morning’s GDP print for insight into the health of the local economy. #European Markets Mixed as Uncertainty Dampens Risk Appetite# U.S., European Markets Rebound on Dovish Fed Signal
