Markets across the Arab world, Africa and Europe opened against a difficult global backdrop on Friday, with investors watching rising bond yields, elevated oil prices and continuing geopolitical uncertainty in the Middle East.
European markets seek a modest recovery
European equities opened slightly higher after a sharp sell-off on Thursday. The pan-European STOXX 600 had fallen 1.3% in the previous session, while investors continued to assess rising government bond yields, inflation concerns and weakness in banking shares.
France’s fiscal position remained a particular concern, with the spread between French and German borrowing costs reaching its widest level since 2012. The euro also weakened sharply against the Swiss franc.
Investors were waiting for euro-zone inflation data and the latest United States employment figures, both of which could influence expectations for future interest-rate decisions.
Gulf markets remain under pressure
Arab markets opened cautiously as investors assessed mixed signals surrounding oil supplies and the conflict involving the United States and Iran.
Most Gulf exchanges ended lower on Thursday. Saudi Arabia’s benchmark declined 0.5%, while Qatar fell 0.6%. Abu Dhabi and Dubai also closed lower, by 0.7% and 0.5% respectively.
Egypt moved in the opposite direction, rising 2.2% and ending a nine-session losing streak.
Oil prices remained close to $100 a barrel, offering support to energy producers but increasing concerns over inflation, transport costs and household purchasing power.
African markets follow global signals
African investors were also monitoring the stronger dollar, higher international yields and continuing volatility in the oil market.
South Africa’s All-Share index was indicated around 0.7% higher, although the wider market remained sensitive to global risk appetite and currency movements. Egypt’s strong performance on Thursday provided some support for regional sentiment.
Trading in India was closed for the Gandhi Jayanti holiday, limiting activity in one of Asia’s largest markets.
The overall mood remained cautious rather than decisively negative. Investors were looking for evidence that bond markets could stabilise, while geopolitical developments, oil prices and the United States employment report remained the principal short-term risks.
Newshub Editorial in Africa – 2 October 2026
Markets across the Arab world, Africa and Europe opened against a difficult global backdrop on Friday, with investors watching rising bond yields, elevated oil prices and continuing geopolitical uncertainty in the Middle East.
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