Global Equities Markets Wobble as US Yields Attract Investors
With a downtrend in US and European stocks, global equities market indicators declined as rising energy costs shifted investor sentiment away from riskier assets.
Elevated US Treasury yields reduce investors’ bets on risky assets amid a slowdown in post-earnings bets on the Magnificent Seven and other AI and technology stocks.
A surge in energy prices and persistent geopolitical tensions set the tone for global markets, with risky assets facing renewed headwinds, stockbroking and portfolio management subsidiary of First National Bank (FNB) said in a brief.
US indices closed lower, with the S&P 500 down 0.52%, the Nasdaq off 0.32%, and the Dow Jones losing 0.51%, after higher Treasury yields and deadlocked efforts to reopen key oil transit routes deepened concerns around inflation and government spending.
European equities mirrored this caution, with the Euro Stoxx 50 slipping 0.14% and the FTSE 100 falling 0.28%. The mood across Asia-Pacific remains mixed, with the Hang Seng Index down 0.65% as investors take profits following recent gains in technology stocks.
The Nikkei 225 is trading down 1.93%, also weighed by profit-taking and a stronger yen, while the S&P/ASX 200 is up 0.12%, staging a tentative rebound despite ongoing inflation concerns.
The Johannesburg Stock Exchange (JSE) is set for a cautious open this morning as global futures tilt lower and Asian markets display little directional conviction.
While a 0.11% advance in the ASX 300 Metals and Mining Index should provide support for local resource counters, pressure on precious metals is likely to temper enthusiasm across gold and platinum miners.
Brent crude’s modest rise gives some relief to energy names but broad-based commodity softness, particularly in gold and platinum, may cap gains for the JSE’s miners as the session unfolds. Tencent’s 1.79% decline signals a weaker start for Naspers and Prosus.
The South African local bourse started the week on positive footing amid fluctuating oil prices as investors continue to weigh geopolitical tensions against signs that more oil is moving through the Strait of Hormuz than initially expected.
Recovering from last week’s weakness the All Share Index closed 0.54% higher at 114 673 points and the Top 40 gained 0.69% at 106 966 points.
Resources (+3.00%) outperformed, driven by broad-based strength across Precious Metals & Mining Index (+3.40%), Basic Materials Index (+2.83%) and the Oil, Gas & Coal Index (+2.47%) with Thungela Resources gaining 10.07% post reporting interim results and declaring an interim dividend.
Financials (-0.34%) ended lower as bond yields rose, while Industrials fell 0.83% as broad-based weakness across retail, telecoms and luxury goods stocks offset modest gains in technology.
Oil Prices Inch Higher, Brent Nears $90 on Peace Talks Doubt
