Global Equities Markets Bearish, Wall St, Euro Stoxx 50 Slip
Global equities markets closed on a bearish note on Friday, with Wall Street, the FTSE 100, and the Euro Stoxx 50 indices falling week-on-week as geopolitical disruptions dampened investor sentiment.
Wall Street ended the week sharply lower, with the NASDAQ down 4.18%, the S&P 500 2.64% lower, and the Dow Jones off 1.35%, as chipmakers including Micron (-13.3%) and Nvidia (-6.2%) led losses amid a broad technology selloff.
In Europe, the FTSE 100 ended the week barely changed, up 0.07%, while the Euro Stoxx 50 fell 0.68%, as regional markets contended with shifting global risk appetite.
A global repricing of interest rate expectations is driving risk aversion across major markets, after stronger-than-expected US jobs data reinforced the view that the Federal Reserve could raise rates later this year, First National Bank said in its morning brief.
Geopolitical tensions escalated after Iran launched missiles toward Israel, further dampening sentiment and propelling oil prices higher. The impact is reverberating across the Asia-Pacific region, where the Hang Seng Index is down 1.18%, the Nikkei 225 is down 3.98%, and the ASX 200 is off 0.70%.
The Johannesburg Stock Exchange (JSE) is set for a weaker open this morning as global futures are broadly softer and Asian markets are currently under pressure as ongoing geopolitical tensions and growing expectations for higher interest rates in the United States (US) weigh on sentiment.
Tencent is down 1.06%, presenting a negative read-through for Naspers and Prosus. In addition, the ASX 300 Metals and Mining Index’s 2.47% slide does not bode well for local resource counters.
Softer gold and platinum prices may weigh on precious metal miners, while Brent crude’s sharp rebound offers some support to energy shares.
Local equities closed mostly lower on Friday, with sentiment overshadowed by ongoing uncertainty in the Middle East, even as Fitch Ratings upgraded South Africa’s long-term foreign currency debt rating from BB-to BB, citing prudent fiscal management and progress on fiscal consolidation.
By market close, the JSE All Share Index slipped 1.05%, and the Top 40 fell 1.15%, marking its third consecutive day of declines.
Resources (-4.35%) bore the brunt of the selloff, coming under pressure as Precious Metals and Mining (-4.35%) tumbled sharply.
Valterra Platinum was the single largest drag on the Top 40, declining 8.5% on the day. Industrials (+0.78%) and Financials (+0.41%) bucked the trend and closed in green territory. Nigeria’s Total Capital Importation Rises 84% in 12 Months
