FTSE 100 Dips, Wall Street at Record Highs Amidst Ceasefire Extension
With the FTSE 100 bearish and Wall Street bullish, global markets’ trading direction diverges amid renewed optimism following the US-Iran decision to extend the ceasefire, despite reported military attacks between Washington and Tehran.
Wall Street closed at fresh record highs as optimism over a reported preliminary United States-Iran agreement to extend their ceasefire by 60 days.
The agreement potentially allows freer oil shipments, lifting sentiment, with the S&P 500 up 0.58%, the NASDAQ up 0.91%, and the Dow Jones edging up 0.05%.
The FTSE 100 fell 0.75%, snapping an eight-session winning streak, as losses across banks, healthcare and utilities offset gains in energy and defence, while the Euro Stoxx 50 slipped 0.25% amid choppy trading driven by developments in Middle East negotiations.
In Asia, the Nikkei 225 has surged 2.60%, the ASX 200 has rallied 1.46%, and the Hang Seng Index has advanced 1.10% as easing geopolitical risks and strong performance in the tech sector buoy regional markets.
The Johannesburg Stock Exchange (JSE) is set for a firmer open this morning following a weaker previous session, as stronger global futures and selective commodity support improve sentiment. Asian markets are trading higher, with Tencent rising over 1.5%, providing a positive lead for Naspers and Prosus.
The ASX 300 Metals & Mining Index has gained 3.08%, driven by strength in resource stocks and likely to lend support to local miners. Gold is slightly firmer, which may benefit precious metal counters, while platinum remains largely unchanged.
The JSE traded lower on Thursday as investors digested the South African Reserve Bank’s decision to raise interest rates by 25-basis points to 7.00%, marking the first hike since 2023.
The All Share Index fell 0.29%, while the Top 40 Index declined 0.26%. Resources bucked the broader market weakness, gaining 0.29%, while Financials led the decline with a 0.98% drop and Industrials slipped 0.25%.
The market opened sharply lower amid renewed tensions in the Middle East, as US strikes on Iran reignited concerns over oil prices and inflation. Dollar Index Climbs as US-Iran Attacks Dash Expectations
