Global markets mixed, driven by energy, tech weakness and US tariffs

Market Commentary

US equities closed mixed on Friday as investors balanced corporate earnings against the interest-rate outlook. The S&P 500 edged higher, the Nasdaq 100 fell 1.10%, and the Dow gained 236 points. Oil eased slightly but remained sharply higher for the week after escalating US-Iran strikes disrupted tanker routes through the Persian Gulf and Red Sea. Treasury yields also rose as markets increased bets that higher energy prices could fuel inflation and prompt further Federal Reserve rate hikes. Intel fell 7.90% despite posting its strongest revenue growth in 17 years, while concerns over artificial intelligence-related capital spending weighed on hyperscalers, with Tesla and Meta down 2.10% and 1.80%, respectively.

The US has introduced new tariffs on imports from around 60 trading partners, including South Africa, expanding trade barriers first introduced under US President Donald Trump. Most affected countries will face tariffs of between 10% and 12.5%, with South Africa subject to a 12.5% duty on a broad range of goods. The EU and Taiwan will face tariffs of up to 10%, while Japan, Switzerland and South Korea will generally be capped at 12.5% under existing trade commitments. Exemptions will apply where products cannot be sourced domestically or where tariffs would cause significant economic disruption. The new measures took effect just after midnight on Friday (New York time).

European shares ended higher on Friday, recouping some of the previous session’s losses after a string of positive earnings. The Euro STOXX 50 climbed 1.10% to finish at 6 281, while the STOXX Europe 600 rose 0.80% to 644.50. SAP jumped nearly 9% after disclosing a robust cloud backlog. Wolters Kluwer added 5% after beating expectations for recurring revenue. Large banks also rallied, recovering from a volatile, results-driven week: Santander gained 3.20%, and BBVA, Intesa Sanpaolo and BNP Paribas all rose by more than 2%.

Asian markets saw sharp moves: Japan’s Nikkei 225 fell almost 3%, driven by rising oil, new US trade tariffs and a global tech sell‑off that weighed on exporters. Hong Kong’s Hang Seng dropped 1.44%, while the Shanghai Composite closed down 1.68%.

In South Africa, the JSE finished in positive territory, with the All‑Share Index up 0.98% as it recovered some midweek losses. Industrials and consumer names had slipped earlier, pressured by Dis‑Chem’s announcement of the post‑close resignation of its co‑founder Ivan Saltzman, alongside Clicks and Woolworths amid tighter household budgets. The Top 40 and Resources 10 rose 1.10% and 1.20%, respectively.

In commodities, crude oil retreated 3% to about $89.30 a barrel after reports that Pakistan, with Chinese backing, had moved to revive talks between the US and Iran, raising hopes of a diplomatic easing of tensions. Beijing is concerned that attacks on Gulf states and disruption in the Strait of Hormuz are harming its trade interests. Oil nonetheless finished the week roughly 8% higher following the recent escalation in the Middle East, while Brent dipped nearly 2% to $98.71 a barrel. Precious metals posted modest gains: gold edged up 0.14% to $4 052.99 an ounce and silver rose 0.89%.