Wall St. Down, European Stocks Take Steeper Hit from Energy Cost Surge
Wall Street closed lower yesterday, with the S&P 500 down 0.48%, the NASDAQ down 0.64%, and the Dow Jones down 0.77%, as higher Treasury yields compounded the pressure.
Europe suffered steeper losses as energy costs threatened demand and reinforced expectations for tighter policy from the European Central Bank.
Surging oil prices continue to amplify inflation and rate concerns across global markets as the conflict between the US and Iran intensifies.
The FTSE 100 closed 1.31% lower, and the Euro Stoxx 50 fell 1.58% as rate-sensitive financials and industrials weakened. These soft overnight cues have carried over into Asian trade this morning.
The Hang Seng Index is down 1.29% amid concerns over energy flows and elevated US yields, while the Nikkei 225 has slipped 0.53% so far. Australia is under pressure as well, with the ASX 200 trading 1.21% lower as domestic rate concerns deepen following warnings over persistent inflation.
The Johannesburg Stock Exchange (JSE) is set for a cautious open this morning as firmer global futures contend with weaker Asian trade and rising bond yields in developed markets.
Following the previous session’s lower close, offshore risk appetite remains fragile, with Hong Kong and Chinese equities retreating as markets weigh prospects of further central bank tightening and persistent geopolitical risks.
Tencent’s 3.66% decline provides a negative read-through for Naspers and Prosus.
On the resources side, Australia’s mining index fell 1.19%, pointing to pressure on diversified miners. Firmer gold should support local gold miners, while softer platinum and palladium prices may weigh on PGM counters.
The JSE closed lower on Wednesday, with the All Share Index and Top 40 both declining 0.80% and 0.86% to 116 520 and 109 091 points, respectively. Financials (1.76%) led the losses, with banking counters such as Standard Bank (-4.18%) and Nedbank (-2.18%) falling sharply.
Industrials and Resources reversed gains from the previous session, shedding 0.68% and 0.18%, respectively.
Investors continued to monitor developments in the Middle East after Brent crude rose above $100 per barrel as tensions between the US and Iran escalated. Local traders now look ahead to today’s mining and manufacturing production print. Oil Hot Up – Brent Tops $95 as U.S.-Iran Tensions Escalate
