In South Africa, the rand edged higher against the dollar following the release of a weaker-than-expected US purchasing managers' index (PMI), as traders awaited further American data for clues on the Federal Reserve’s next interest rate move. By 15h07 GMT, the rand was trading at R17.66 to the dollar, around 0.20% stronger than Tuesday’s close. The Johannesburg Stock Exchange followed suit, with the Top-40 index closing 0.50% higher.

The S&P 500 rose by 0.40% and the Nasdaq gained 0.70% on Wednesday, while the Dow Jones remained largely unchanged, as markets attempted to recover from the previous day’s losses. Shares in Alphabet surged more than 7% after a US federal judge ruled the company could retain its Chrome browser, provided it ends exclusive search agreements and shares search data. The decision helped the tech giant avoid a potentially damaging divestiture of Chrome, boosting the communication services sector and lifting overall market sentiment. Meanwhile, pressure on US government bonds eased, offering further support to investor confidence.

London’s FTSE 100 also regained ground, rising 0.60% to close at 9 178 after suffering its steepest daily decline since April in the previous session. The sharp fall had followed a global bond selloff that pushed the UK’s 30-year bond yield to its highest level since May 1998. As investors watched for signs of policy direction, Chancellor Rachel Reeves confirmed the date for her forthcoming Budget, amid speculation of potential tax hikes and growing concern over the state of Britain’s public finances.

Across Europe, equity markets closed on a firmer footing. The STOXX 50 and STOXX 600 both climbed 0.70%, rebounding from Tuesday’s 1.40% slump. The previous day’s losses had been driven by fears over debt sustainability in major economies, leading to a spike in bond yields, with the UK market experiencing the most pronounced pressure.

In Asia, Japan’s Nikkei 225 fell 0.88% to 41 939, and the broader Topix Index declined 1.07% to 3 049, reversing earlier gains and mirroring Wall Street’s overnight weakness. The drop reflected ongoing concerns about rising global bond yields, persistent economic uncertainty, and renewed trade tensions, all of which weighed on investor sentiment.

Chinese markets continued their downward trajectory for a second consecutive day. The Shanghai Composite slipped 1.25% to close at 3 810, while the Shenzhen Component fell 0.65% to 12 472, as investors locked in profits. Market sentiment was further dampened by geopolitical tensions after President Xi Jinping, speaking at a military parade, warned that the world faced a stark choice between “peace or war” and “dialogue or confrontation” - remarks that coincided with fresh accusations from US President Donald Trump, who alleged on social media that China was conspiring against the United States.

In commodities, WTI crude oil futures retreated below $64 per barrel, pulling back from a four-week high of $65.70 earlier in the session, as renewed signs of rising global supply weighed on prices. Meanwhile, gold remained resilient, trading around $3 530 per ounce - hovering near record highs - supported by expectations of US monetary easing and a continued flight to safety amid mounting geopolitical and economic risks.