European equities ended sharply lower on Tuesday, dragged down by steep losses in financial stocks as investors reassessed the global interest rate outlook. The STOXX 50 fell 1.30% to 5 372 points, while the broader STOXX 600 dropped 1.20%. Sentiment was cautious ahead of major monetary policy decisions this week from the Federal Reserve (Fed) and the Bank of England, alongside renewed US–China trade talks as US President Donald Trump began his visit to the UK. Germany’s ZEW Economic Sentiment Index surprised on the upside, but UK labour market figures suggested continued weakness. Key financials including Allianz, Santander, Intesa Sanpaolo, Munich Re and Deutsche Boerse each declined around 2.50%. L’Oréal also retreated nearly 3% following a downgrade by Jefferies. Luxury stocks were volatile as investors awaited clarity on Armani’s future following its founder’s death, with reports indicating a possible sale.

The UK's FTSE 100 declined 0.90% to a two-week low, marking its third consecutive daily loss as traders digested company results and fresh employment data. Unilever slipped almost 1% after confirming Srinivas Phatak as permanent CFO, while Anglo American rose 0.80% following a deal with Chile’s Codelco to jointly develop nearby copper assets. Wage growth excluding bonuses matched expectations at 4.80%, with unemployment steady at 4.70%.

In the US, stocks eased as investors booked profits ahead of the Fed’s key policy announcement. The S&P 500 fell 0.10% after earlier reaching a new high, the Nasdaq held steady and the Dow Jones lost 107.86 points. Major tech firms including Nvidia, Microsoft, Alphabet and Palantir recorded declines, while financials and utilities also weighed on the market. Traders widely anticipate a 25-basis-point rate cut, the Fed’s first since December last year, while monitoring Chair Powell’s remarks for guidance on future policy. 

Asian markets showed mixed results. Japan’s Nikkei 225 gained 0.30% to close at 44 902.27 points. China’s Shanghai Composite was nearly flat, up 0.06% at 3 858.17, while Hong Kong’s Hang Seng edged down 0.12% to 26 415.78. Overall sentiment remained cautious amid ongoing uncertainties.

Locally, markets recorded modest gains. The ALSI rose by 0.20% with a 210-point advance, while the Top 40 increased by 0.21%. The JSE Industrial index gained 0.28%, led by strong performances from industrial metals and mining stocks. The rand strengthened by 2.15% against the dollar to trade at R17.32 and gained 0.33% against the pound.

Brent crude futures climbed 1.51% to $68.46 a barrel, extending gains amid renewed supply concerns linked to Russia. Ukraine launched another strike on a refinery overnight, part of its campaign targeting Russian energy assets including the Primorsk export terminal. Goldman Sachs estimates these attacks disrupted about 300 000 barrels per day of Russian refining capacity during August and early September. Reuters also highlighted pipeline operators restricting storage availability for producers, worsening supply bottlenecks. Meanwhile, the EU is considering further sanctions targeting companies in India and China involved in supporting Russia’s oil trade.

Metal commodities were mixed. Gold rose 0.28%, trading at $3 688.97 an ounce, while silver and platinum declined by 0.46% and 0.96%, respectively.