Wall Street slides as Iran conflict reignites; Sasol posts stronger earnings

Global markets came under renewed pressure over the past 28 hours after the United States carried out fresh strikes on Iranian targets, reversing what had been a calmer end to August and sending oil prices and bond yields sharply higher.

Wall Street bore the brunt of the sell-off on Tuesday. The S&P 500 closed at 7,631.47, the Dow lost 419 points to finish at 52,766.88, and the Nasdaq dropped 271 points to 26,099.77, with technology shares hit hardest as investors rotated out of the sector.

The renewed hostilities pushed the US 10-year Treasury yield above 4.75% for the first time in 19 months, while gold steadied after a two-session pullback and Asian markets weakened into Wednesday's session. Currency markets were comparatively muted, though the yen and Swiss franc softened against a backdrop of rising global bond yields.

Sasol lifts annual earnings

Locally, the standout corporate news came from Sasol, which released its results for the year to end-June on Tuesday. Adjusted EBITDA increased 17% to R60.7 billion, while headline earnings per share rose 9% to R38.31, with the group crediting stronger production at its Secunda and Natref plants, higher Brent crude prices and materially improved refining margins.

Fuels earnings before interest and tax more than tripled to R19.9 billion, while the group's gas business saw earnings fall sharply on a stronger rand and higher costs linked to its Mozambique development.

The dividend remains on hold, Business Day reported.

JSE reaction

At the time of writing, a confirmed closing level for the FTSE/JSE All Share Index was not available from verified sources. Given the combination of a firmer oil price – typically supportive of Sasol and other energy counters – against a backdrop of broad global risk-off sentiment, local trade is likely to have been mixed rather than one-directional. We will update this report once official closing figures are confirmed.