S&P 500 Dips as Wall Street Bearish, European Markets Rally
With Wall Street sold off, global equity markets experienced some portfolio rebalancing over shifting investor sentiment as post-earnings bets on the Magnificent Seven began to ease.
Geopolitical risk and labour market positioning defined the overnight session, with oil prices rising on persistent uncertainty over the Strait of Hormuz and investors adopting a cautious stance ahead of today’s pivotal United States employment report.
The S&P 500 closed lower by 0.18% on Thursday, the Nasdaq Composite ended barely changed, and the Dow Jones Industrial Average fell 0.85%, as escalating Middle East tensions drove oil prices sharply higher, stockbroking and portfolio management subsidiary of First National Bank (FNB) said in a brief on Friday,
These macro shifts stoke inflation fears and rate-hike concerns ahead of the US non-farm payrolls report. European equities closed mostly higher yesterday, with the Euro Stoxx 50 rising 0.40% to a fresh record close.
Meanwhile, the FTSE 100 slipped 0.19% as Middle East tensions pushed gilt yields higher and offset an otherwise solid earnings backdrop.
The mostly negative cues have carried over to Asian markets on Friday’s trading session, with the Hang Seng and Nikkei giving back 0.15% and 0.59% so far, respectively. The ASX 200 is trading marginally softer today, down 0.04%.
The South African Johannesburg Stock Exchange (JSE) is set for a cautious open on Friday as investors adopt a cautious stance amid rising tensions in the Middle East, while also awaiting key labour data due out of the United States later today.
Despite global futures pointing in conflicting directions, Tencent is trading 0.42% lower, a move that is likely to weigh on Naspers and Prosus at the open.
The ASX Metals and Mining Index is up 1.25% today, lending support to resource counters on the JSE. Spot gold is firmer this morning, providing a positive backdrop for gold miners, while spot platinum has also strengthened, lending further support to precious metals counters.
The JSE closed marginally weaker on Thursday as investors balanced a mixed global backdrop against a busy day of corporate updates. The All-Share Index closed 0.09% lower at 115 306 points, and the Top 40 eased 0.11% to 107 258 points.
Resources (-0.39%) were weighed down by softer gold, platinum, and silver prices while Industrials (-0.38%) were dragged lower by counters like Naspers (-2.1%), Karoo (-6.5%) and other consumer/technology counters, offsetting strong gains in Sappi (+12.6%) and Aspen (+3.09%).
Financials bucked the trend, closing 0.50% higher, driven by gains in Nedbank (+2.13%), Absa (+1.12%) and Santam (+1.40%), as investors remained constructive on the outlook for South African banks and insurers. Wall Street, European Markets Rally on Global Inflation Relief Bets
