Major US stocks traded lower on Thursday as concerns about lingering inflationary pressures, tightening monetary policy and the war in Ukraine weighed on sentiment across several asset classes. Nasdaq, S$P 500 and Dow Jones opened at 11364.24, 3935.18 and 31834.11 respectively.
Fresh economic data showed slowing wholesale inflation in April, but still intense price pressures, meeting forecasts, prices rose 0.5 percent in April, from a 1.6 percent jump in March. Prices over the year slowed to 11 percent from 11.5 percent. Inflation data released on Wednesday may have shown a peak in price growth, but the figures were hotter than forecast.
European equities bludgeoned on Thursday as investors sought to hide on growing concerns of an impending global economic slowdown. FTSE100, DAX, CAC40 and Stoxx 600 ended trading at 7232.44, 13717.54, 6199.23 and 423.68 respectively.
The overhanging cloud on Thursday was the news the UK economy ground to a halt over the course of the first quarter of 2022.
Major SA stocks are getting a hit from all angles as both domestic and global conditions takes toll on investors on the JSE. Worries about economic growth and slower demand from China have tripped up the mining sector. Allshare, financials and resources ended at 66474.38, 39798.94 and 39014.98 respectively.
Foreign investors were net buyers of 0.08 billion rand worth of SA stocks. On individual stocks, luxury giant Richemont is leading the selloff because of the sector’s sensitivity to rising rates. The same goes for tech, hammering Naspers and Prosus.