Global markets mixed as rising yields and oil prices weigh on sentiment

US equities ended Tuesday’s session mixed, as rising Treasury yields and firm oil prices continued to weigh on investor sentiment. The S&P 500 fell 0.20%, while the Dow Jones Industrial Average declined by 130 points. The Nasdaq Composite bucked the broader trend, gaining 0.20%.

Treasury yields continued to climb, with the 10-year yield trading near its highest level since 2007 and the 30-year yield approaching levels last seen in 2004. Investors remained concerned that elevated crude-oil and fuel prices could prolong inflationary pressures, while widening fiscal deficits added to concerns about the sustainability of government borrowing. Financial shares also came under pressure, with Bank of America falling 0.90%.

Technology stocks delivered a mixed performance as major artificial intelligence companies and chipmakers continued to raise substantial amounts of debt to fund their expansion. Alphabet declined 0.50% and Nvidia fell 0.70%, while Meta gained 3.20%. Oracle advanced 4%, Broadcom rose 1.60% and Micron added 1%. Optimism surrounding Anthropic’s proposed stock-market listing provided some support for the technology sector. The IPO could value the company at over $2 trillion.

European equities closed mixed as higher bond yields and elevated energy prices weighed on sentiment. The pan-European STOXX 600 edged down 0.09% to 638.08 points after surrendering earlier gains. Germany’s DAX rose 0.10% to 25 399.21, while London’s FTSE 100 fell 0.45% to 10 636.71. At 17h34 SAST, France’s CAC 40 declined 0.63%. Investors assessed the possibility of further US Federal Reserve rate increases, alongside the potential impact of persistently high energy costs on the European economy, while the European Central Bank’s inflation outlook also remained in focus.

Asian equities closed mostly lower, as risk appetite was undermined by rising US Treasury yields, a firmer dollar and heightened geopolitical uncertainty surrounding the Iran conflict. Japan’s Nikkei 225 fell 0.60%, weighed down by ex‑dividend trading among more than half of its constituents and weakness in heavyweight technology and financial stocks. Hong Kong’s Hang Seng Index declined 0.48%, dragged lower by Shein, whose shares plunged more than 10% after its first post‑IPO earnings showed a sharp fall in quarterly profit and slowing revenue growth. In contrast, China’s Shanghai Composite edged up 0.18%, outperforming the region after reports that the State Council had met to discuss measures to enhance the effectiveness of macroeconomic policy support.

South African markets closed marginally higher on Tuesday, as investors balanced mixed local economic data against firmer gold prices and a modest retreat in oil. On the Johannesburg Stock Exchange, the FTSE/JSE All Share index gained 0.31% to 109 440.71, with the Top 40 advancing 0.39% to 101 729.69, supported by selective buying despite recent volatility in mining names. The currency remained range-bound, with the dollar trading near R16.41 at the close, the pound around R21.77 and the euro close to R18.68, as traders awaited further cues from domestic inflation prints and the central bank’s policy stance. In the bond market, South Africa’s benchmark 2035 government bond strengthened, with its yield falling 8 basis points to 8.83%, reflecting improved risk sentiment and steady demand for local fixed income.

On the commodities front, Crude Oil fell towards $90.50 a barrel after the US announced another release from its Strategic Petroleum Reserve, while recovering Saudi Arabian exports added to expectations of increased supply. Oil prices were also influenced by signs of easing supply disruptions, with Saudi Arabia reportedly restoring part of the capacity of a key pipeline following drone attacks. Meanwhile, indirect talks between US and Iranian officials were reportedly held through mediators, adding to hopes of reduced tensions in the region.

Brent crude declined 1.42% to trade at $103.79 a barrel at 20h06 SAST. Gold rose 1.16% to $4 161.89 an ounce, while silver gained 0.25%. In contrast, platinum, declined 1.64%.