European markets closed lower on Thursday, weighed down by the US Federal Reserve's hawkish stance on interest rates and escalating tensions in the Middle East. The STOXX 50 slipped 1.30% to 5 200, while the broader STOXX 600 lost 0.80% to finish at 536. Meanwhile, the Bank of England opted to keep interest rates unchanged at 4.25% in a 6 to 3 vote, citing ongoing global uncertainty and sticky inflation. Policymakers suggested that inflation will likely hold steady through year-end before easing, reinforcing a cautious path forward for monetary policy.

In South Africa, the FTSE/JSE All Share Index dipped slightly by 0.08% after data showed a steep 20.80% year-on-year drop in building plans approved in April 2025—marking the steepest decline since January—largely due to a drop in non-residential permits.

Asian markets also saw widespread losses. Hong Kong’s Hang Seng Index plunged 2% to 23 238, hitting a three-week low on its third straight day of declines. The slide was triggered by a sharp drop in US futures following reports that American officials may be planning a strike on Iran, raising fears of deeper US involvement in the Israel-Iran conflict. In Japan, the Nikkei fell 1.02% to 38 488, and the Topix slipped 0.58% to 2 792, ending a three-day rally as geopolitical tensions unnerved investors.

US markets were closed on Thursday due to a public holiday.

Brent crude surged past $77 a barrel, reaching a four-month high, amid mounting conflict risks. Reports claimed Israel struck Iran’s Arak nuclear facility, while US officials are allegedly preparing potential military action—adding fuel to fears of a wider regional conflict.