Global markets steady despite tariff turbulence

Markets had a mixed day on Thursday as global investors reacted to trade tensions, economic data, and corporate earnings. Asian markets saw Hong Kong’s Hang Seng Index rise by 0.60%, ending the session at 24 028.37. The rebound was driven largely by gains in financial and property stocks. In contrast, Japan’s Nikkei 225 dropped by around 0.44%. The decline followed renewed trade concerns after President Trump confirmed a 25% tariff on Japanese goods, set to take effect from 1 August. Uncertainty surrounding the ongoing US–Japan trade negotiations, along with investor caution ahead of Japan’s upcoming Upper House elections on 20 July, also weighed on sentiment.

US stock markets ended mostly higher on Thursday, with investors choosing to focus on robust corporate earnings and record-breaking performances, despite fresh trade tensions. The S&P 500 edged up by nearly 0.30%, reaching a new all-time high. The Dow Jones Industrial Average added 192 points, while the Nasdaq 100 slipped by 0.10%. Markets remained largely unshaken even after President Trump announced a 50% tariff on imports from Brazil and confirmed additional duties on copper and other goods set to take effect from 1 August.

Investor sentiment was lifted by ongoing strength in the technology sector. Nvidia rose 0.70% after recently becoming the first publicly listed company to exceed a $4 trillion market capitalisation—further fuelling optimism around AI-related stocks. Tesla shares surged 4.70% following updates on its robotaxi rollout and plans to integrate xAI’s Grok chatbot into its vehicles.

South African markets closed marginally higher, with the FTSE/JSE All Share Index edging up by 0.14% to finish at 97 364.46. The FTSE/JSE Top 40 also posted a modest gain, closing at 89 571, recovering from a dip earlier in the session. The rand strengthened by 0.45% trading at R17.73 to the dollar following upbeat manufacturing data. 

European stock markets also edged up, extending the winning streak for a fourth consecutive session on Thursday, with the STOXX 600 rising 0.50%, although the STOXX 50 ended flat due to pressure on banking stocks. Among the major regional indices, the UK’s FTSE 100 climbed 1.24%. In contrast, Germany’s DAX lagged behind, slipping by 0.31% and diverging from the overall upward trend.

Commodity markets showed divergence—Brent crude fell 1.85% to trade at $68.69 per barrel, meanwhile oil prices fell by more than 2%, after OPEC revised down its global demand forecast for the period 2026 to 2029, citing softer consumption trends in China. Metal commodities rose with gold trading 0.35% higher, gaining for a third straight session, supported by safe-haven demand amid escalating trade tensions.