Arab, African and European financial markets delivered a divided opening on Thursday, with European shares reaching another record high while Gulf investors remained cautious amid uncertainty surrounding Iran–Oman negotiations and renewed attacks on Saudi-linked shipping. African markets showed a steadier tone, supported by softer oil prices and a weaker US dollar.
European shares reach fresh record
European equities extended their recent rally, with the pan-European STOXX 600 gaining 0.4 per cent to reach 660 in early trading. The benchmark had already closed at record levels during the previous two sessions, reflecting growing confidence in corporate earnings and hopes that geopolitical tensions in the Middle East could ease.
London’s FTSE 100 opened approximately 0.3 per cent higher, while France’s CAC 40 advanced around 0.7 per cent. Italy’s FTSE MIB and Spain’s IBEX 35 also moved higher, although Germany’s DAX traded slightly lower as weakness in Siemens shares offset gains elsewhere.
Deutsche Telekom rose more than 5 per cent after expanding its 2026 share buyback programme by €3 billion to as much as €5 billion. Irish nutrition group Glanbia climbed more than 8 per cent following a 7 per cent increase in half-year revenue.
Analysts now expect second-quarter earnings among STOXX 600 companies to have increased by almost 21 per cent, substantially above the growth forecast of approximately 12.5 per cent recorded in early May.
Gulf markets remain cautious
Arab markets opened in a narrow range as investors assessed the possibility of an agreement governing shipping through the Strait of Hormuz. Saudi Arabia’s benchmark index edged 0.1 per cent higher, helped by a 1.2 per cent advance in Saudi National Bank.
Dubai’s main index fell 0.7 per cent, pressured by a 2 per cent decline in property developer Emaar Properties. Abu Dhabi slipped 0.1 per cent, while Qatar’s benchmark lost 0.2 per cent as Industries Qatar declined by 0.7 per cent.
Investors were also monitoring reports of missile attacks on Saudi oil tankers near Yanbu and in the Gulf of Aden. These developments reinforced concerns about the security of regional energy infrastructure and limited the positive impact of diplomatic progress between Iran and Oman.
African trading opens on steadier ground
In Africa, South African financial markets began Thursday cautiously. The rand traded near 16.34 against the US dollar, little changed from its previous close, as a softer dollar and lower oil prices balanced continued geopolitical uncertainty.
South Africa’s benchmark 2035 government bond strengthened slightly, with its yield declining by 2.5 basis points to 8.285 per cent. Johannesburg-listed shares also moved higher during early dealing following the previous session’s gains.
In Cairo, Egypt’s EGX30 index advanced approximately 0.2 per cent, extending its strong longer-term performance. Egyptian equities have been supported by renewed foreign interest and expectations that easing regional tensions could reduce pressure on energy costs, trade routes and inflation.
Politics and earnings set the direction
Thursday’s opening demonstrated how differently markets are interpreting the same geopolitical developments. European investors focused on stronger corporate profits and the possibility of restored Gulf shipping, while Arab markets remained more exposed to immediate security risks. African markets benefited from lower oil prices but retained a cautious stance ahead of further developments in the Iran negotiations.
Newshub Editorial in Europe – 6 August 2026
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