US stock markets closed lower on Wednesday following the Federal Reserve's (Fed) decision to keep interest rates steady at its July meeting. The S&P 500 slipped 0.10% and the Dow fell by 171 points, while the Nasdaq managed a 0.20% gain. Fed Chair Jerome Powell indicated that the central bank is still assessing the inflationary impact of President Trump’s tariff increases, cooling hopes for a near-term rate cut. In a separate development, trade tensions intensified after Trump imposed a 25% tariff on Indian goods and a 50% levy on Brazilian imports.

In South Africa, the rand remained stable in early trading, hovering around R17.85 to the dollar. Pressure is mounting for the country to finalise a trade deal with the US before the looming 1 August deadline. Moreover, South Africa’s Trade Minister reaffirmed the country’s commitment to the US-led African Growth and Opportunity Act (AGOA) framework, highlighting ongoing efforts to deepen bilateral trade ties. This includes pledges to ease restrictions on US poultry imports, facilitate energy-related purchases, and support planned investments amounting to $3.3 billion in key US sectors such as manufacturing, infrastructure, and renewable energy. 

Further abroad, the Eurozone economy expanded by just 0.10% in the second quarter of the year, a sharp slowdown from 0.60% in the first quarter but still slightly above flat growth expectations. Investor confidence remained fragile amid criticism that the recent US-EU trade agreement disproportionately favours the US. Market forecasts for a European Central Bank rate cut have shifted, with the probability of a cut in March 2026 now at 90%, while expectations for a December move have dropped to 30%.

Oil prices climbed, with WTI crude trading above $70 per barrel—a five-week high—driven by fears of supply disruption. This followed Trump’s ultimatum to Russia to resolve the Ukraine conflict within ten days or face sweeping secondary sanctions.

In Asia, the Hang Seng Index dropped 1.40% to 25 177 points as losses in tech, consumer, and financial sectors deepened following inconclusive US-China trade talks. The Nikkei edged down 0.05% to 40 655 points, with investors awaiting the Bank of Japan’s next policy decision.