Global Equities Markets Dip as Money Moves Out of Risky Assets
Global equities markets sink as US-Iran tensions dampen investors’ buying sentiment; US and European stock indices went south with sell pressure from bellwethers.
AI, semiconductor stocks were sold off, and a bearish mood clouded the Magnificent Seven as US Treasury yields hit multi-decade highs.
Market analysts said surging oil prices and bond yields deepened inflation and rate hike concerns, extending the global equity selloff overnight.
US 10-year Treasury yield reached its highest since early 2025, with the S&P 500 down 0.71%, the NASDAQ 1.03% lower and the Dow Jones off 0.79%.
Escalating US and Iran hostilities also raised risks to energy flows. In Europe, tighter financial conditions and higher fuel costs reinforced expectations of a European Central Bank hike this month.
The Euro Stoxx 50 closed down 0.80%, while the FTSE 100 fell 0.32% as weakness in miners outweighed gains in energy stocks. Against that backdrop, risk aversion is carrying into Asia.
The Nikkei 225 is trading 2.93% lower, the Hang Seng Index has given back 0.96% so far, and the ASX 200 is down 0.99%, with Australia also pressured by caution around growth data and broad losses across miners, healthcare, and consumer stocks.
The Johannesburg Stock Exchange (JSE) is set for a weaker open this morning, extending the previous session’s decline as global futures edge lower and Asian markets are trading under pressure amid a firmer dollar and renewed rate concerns.
Tencent’s 1.31% fall compounds the cautious technology tone, providing a negative read-through for Naspers and Prosus.
On the resources side, a 1.01% retreat in the S&P/ASX 300 Metals and Mining Index points to pressure on JSE miners, reinforced by weakness across most metal prices.
Local equities closed modestly lower on Tuesday, with the All-Share Index declining 0.35% to 115 856 points and the Top 40 shedding 0.37% to 108 358 points.
Financials led the losses among the major sectors, falling 0.53%, while Industrials and Resources declined 0.36% and 0.13%, respectively.
Investor sentiment was weighed down by softer domestic economic data after Absa’s PMI remained in contractionary territory for a third consecutive month.
Global investors shifted money out of risky assets amid rising global bond yields and heightened prospects of US interest-rate hikes after Federal Reserve Chair Kevin Warsh warned that inflation pressures remain elevated. Oil Prices Dip as Qatar, Oman Champion Middle East Peace Effort
