Equity market index breaches mid-May support level

Global equity markets are experiencing significant volatility, driven by a broad sell-off in the technology sector, particularly in Japan and Russia. This market instability is compounded by new US tariff threats against Canada over wildfire smoke and against Brazil on energy equipment, alongside escalating geopolitical tensions involving the US and Iran. The full extent of systemic contagion and the long-term impact of these tariffs remain uncertain.

Global equity markets are experiencing a significant downturn, confirmed by historic declines in the Nikkei 225 and multi-year lows for the MOEX Index. This volatility is primarily driven by a broad sell-off in the technology sector, particularly semiconductors, and exacerbated by escalating geopolitical tensions involving the US, Iran, and the Russia-Ukraine conflict. The extent of systemic contagion beyond tech and specific regional markets remains uncertain.