Global Equities Retreat as Oil Prices Surge

Global Equities Retreat as Oil Prices Surge, Intensifying Inflation and Growth Concerns

October 24, 2026

Dave Dookie, CEO

• U.S. Equities Weaken Amid Technology Sell-Off: The S&P 500 declined 0.46% and Nasdaq Composite fell 0.71%, while the Dow Jones gained 0.41%. Technology stocks faced selling pressure, particularly Meta (-9.40%) and Alphabet (-5.98%), amid concerns over valuations, corporate earnings and elevated interest rates.

• Higher Oil Prices Increase Global Inflation Risks: Brent crude reached approximately US$116.72 per barrel, raising concerns about inflation, transportation costs and economic growth. European economies remain particularly vulnerable to higher energy prices, while major oil producers benefited from stronger commodity prices.

• European and Asian Markets Record Broad Declines: Europe's STOXX 600 fell 1.39%, Germany's DAX declined 1.72%, and the UK's FTSE 100 lost 1.76%. Asian markets experienced sharper losses, with Japan's Nikkei 225 falling 4.03% and Hong Kong's Hang Seng declining 4.52%.

• Trinidad & Tobago Equities Advance Despite Weak Trading Activity: The Composite Index increased 0.59%, supported by stronger cross-listed shares. However, trading volumes declined 40.75% to 654,921 shares, with market turnover falling to TT$8.72 million. Banking system excess liquidity improved to approximately TT$4.14 billion.

• Caribbean Bond Yields Reflect Elevated Financing Costs: Trinidad and Tobago's 2036 and 2038 USD bonds yielded 6.82% and 6.97%, respectively, compared with Jamaica's 2036 bond at 6.21% and Barbados' 2035 bond at 7.44%. National Gas Company's 2036 bond was offered at 91.00, yielding 7.41%, highlighting continued borrowing cost pressures across the region.

U.S. equities faced pressure this week as investors reconsidered technology valuations, earnings prospects and the economic impact of rising energy prices. Over five trading days, the S&P 500 fell 0.46% and the technology-heavy Nasdaq Composite declined 0.71%, while the more resilient Dow Jones Industrial Average gained 0.41%. Selling centered on growth companies amid concerns that high borrowing costs and substantial commitments to artificial intelligence investment could limit future profitability. The declines also underscored heightened sensitivity to earnings expectations after an extended period of strong equity performance.

Technology stocks experienced significant selling pressure, with Alphabet declining to 5.98%, Meta Platforms falling 9.40%, and Nvidia losing 1.48% over the five trading days. Broadcom declined 0.51%, while Apple gained 1.24% and Tesla advanced 4.93%. These divergent performances suggest investors are becoming more selective, favoring companies with demonstrable earnings growth and sustainable cash flow. Meanwhile, U.S. Treasury yields remained elevated, with the 10-year yield approaching 5.00% and the 30-year yield exceeding 5.30%. Higher discount rates continue to challenge equity valuations, particularly for companies whose expected earnings are concentrated further into the future.

The sharp increase in international oil prices added another source of market uncertainty, with Brent crude reaching approximately US$116.72 per barrel. Higher energy costs threaten to reinforce inflationary pressures through transportation, manufacturing and consumer spending. Europe remains particularly vulnerable because of its dependence on imported energy. Germany's industrial sector, alongside manufacturers in France and Italy, faces increasing operating costs, potentially weakening profitability and competitiveness. Rising oil prices also complicate the European Central Bank's monetary-policy outlook by creating the possibility of persistent inflation alongside slower economic growth. Although energy producers benefit from stronger commodity prices, the broader European economy faces renewed pressure on household purchasing power and industrial activity.

Global Equity Markets: Five-Day Performance

Market index	Weekly change
S&P 500	-0.46%
Dow Jones Industrial Average	+0.41%
Nasdaq Composite	-0.71%
FTSE 100, UK	-1.76%
STOXX Europe 600	-1.39%
CAC 40, France	-2.19%
DAX, Germany	-1.72%
FTSE MIB, Italy	-2.60%
Nikkei 225, Japan	-4.03%
Hang Seng, Hong Kong	-4.52%
Shanghai Composite	-0.69%
ASX 200, Australia	-0.13%

United Kingdom and Europe: Energy Costs Weigh on Equities

European equities declined broadly, with the STOXX Europe 600 falling 1.39%. France's CAC 40 lost 2.19%, Germany's DAX declined 1.72%, and Italy's FTSE MIB retreated 2.60%. The UK's FTSE 100 fell 1.76%, reflecting pressure across industrial, consumer and financial sectors. Energy companies were notable exceptions as TotalEnergies gained 3.39%, Chevron advanced 3.65%, and ExxonMobil rose 2.36%, demonstrating how stronger oil prices are supporting upstream producers while weighing on the wider economy.

Asia: Japanese and Hong Kong Markets Lead Declines

Asian markets experienced considerable weakness, with Japan's Nikkei 225 declining 4.03% and Hong Kong's Hang Seng losing 4.52%. China's Shanghai Composite slipped 0.69%, while Australia's ASX 200 declined 0.13%. Japanese equities faced pressure from technology sector weakness and monetary policy uncertainty, while Chinese markets remained sensitive to growth expectations and global trade conditions.

Trinidad & Tobago: Equities Recover Despite Weak Trading Activity

The Trinidad and Tobago Composite Index advanced 0.59% to 993.65, while the All T&T Index declined 0.22%. The Cross Listed Index gained 2.86%. Trading activity remained subdued, with volume declining 40.75% to 654,921 shares and market turnover falling 31.99% to TT$8.72 million. National Enterprises gained 9.07%, while Trinidad Cement declined 11.06%. Banking-system excess liquidity increased by TT$195 million to approximately TT$4.14 billion, indicating improved domestic liquidity despite relatively weak equity-market participation.

Caribbean Sovereign and Corporate Bonds

Caribbean USD bonds continued to reflect elevated international borrowing costs. Trinidad and Tobago's 2030 bond was offered at 94.50, yielding 6.20%, while its 2036 and 2038 issues were offered at 97.50 and 93.85, yielding 6.82% and 6.97%, respectively.

Jamaica 2036 bond was offered at 116.00, yielding 6.21%; the 2045 issue yielded 6.65%. Barbados 2035 bond was offered at 103.50, yielding 7.44%. National Gas Company's 2036 bond had an indicative offer price of 91.00, yielding 7.41%. This yield underscores the financing challenges facing Caribbean energy companies.

Market Outlook

Global financial markets are expected to remain volatile in the coming weeks as investors assess the implications of elevated energy prices, persistent inflationary pressures and the outlook for monetary policy. With Brent crude trading above US$116 per barrel and U.S.

Treasury yields remaining elevated, concerns are increasing that higher energy costs could delay interest-rate reductions and constrain global economic growth. The direction of oil prices, inflation data and central bank policy decisions will therefore be important determinants of market performance.

Trinidad and Tobago could benefit from stronger international oil and natural gas prices through improved export earnings, government revenues and foreign exchange inflows. However, these benefits will depend on domestic production volumes, the timely execution of new energy projects and prevailing contractual arrangements.

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