Global Markets Mixed as U.S Treasury Yield Hits 19-Year High
Global equities shuddered as rising bond yields and persistent inflation fears rippled through markets, driving increased demand for safe havens.
Investors continue to search for optimised returns on investment without taking excessive risks amid US-Iran tension, which has defied a series of peace talks attempts thus far.
On Wall Street, the S&P 500 closed down 0.67%, the NASDAQ shed 0.84%, and the Dow Jones lost 0.65%, all pressured by surging US Treasury yields after inflation worries sent the 30-year yield to a 19-year high.
European bourses were mixed, with the FTSE 100 rising 0.07% and the Euro Stoxx 50 rising 0.04%, despite energy prices and political uncertainty weighing on utilities and defence.
In Asia-Pacific, the Hang Seng Index is currently down 0.55% amid profit-taking and tech weakness, the Nikkei 225 tumbled 1.47%, and the ASX 200 fell 1.32% as investors react to United States-led risk aversion and persistent inflation concerns.
The JSE closed sharply lower on Tuesday, with the All Share Index falling 1.10% and the Top 40 Index dropping 1.17%. The session was dominated by heavy selling in Resources (-3.79%), as precious metals stocks bore the brunt of the decline.
AngloGold Ashanti and Sibanye Stillwater each fell 5.9%, leading the Top 40 lower, as the dollar resumed its advance and precious metals prices sold off. The broader mining index dropped 4.24%. Financials shed 0.52%, with banks down 0.74%.
The one bright spot was Industrials, which gained 0.96%, lifted by a 3.71% advance in the information technology subsector, as Naspers & Prosus rallied on news that Tencent will start monetising its AI models.
The overarching sentiment driver was the ongoing United States-Iran conflict deadlock, which has kept oil above $110 per barrel and stoked inflation fears.
South Africa’s bond yields also rose further. On a more constructive note, South Africa’s weekly government bond auction drew strong demand – suggesting some investors see value at current yield levels despite the risk-off backdrop. NGX ASI Rebounds as BUA, FirstHoldco, Zenith Bank Rally
