Global Markets See Volatility Amid US-Iran Tensions
New York – Global markets experienced heightened volatility on Friday as U.S. President Donald Trump announced a pause in attacks on Iran’s energy infrastructure and signaled improved talks aimed at ending the conflict. Asian equities, US Equities, and global currencies all saw declines, while crude oil prices fell and gold prices rose.Indian Equity Markets Anticipate Negative Opening
Indian equity benchmarks, the BSE Sensex and Nifty 50, are expected to open on a negative note on March 27, tracking losses in the GIFT Nifty, which was trading at 23,051.50.US Equities Experience Significant Decline
The US market experienced a substantial downturn on Thursday. The Nasdaq Composite tumbled more than 2% to confirm a correction, while the S&P 500 and the Dow Jones Industrial Average both fell more than 1%. The Dow Jones Industrial Average closed at 45,960.11, a decrease of 469.38 points, or 1.01%. The S&P 500 closed at 6,477.16, a decline of 114.74 points, or 1.74%, and the Nasdaq Composite ended the day at 21,408.08, a drop of 521.74 points, or 2.38%. Investors reacted to concerns surrounding potential escalation in the U.S.-Israeli conflict and its impact on inflation.Global Market Performance Overview
- Asian Equities: Asian shares fell over 1% following the selloff on Wall Street.
- US Bond Yields: Yields on the 10-year U.S. Treasury and 2-year U.S. Treasury fell by nearly 1 basis point each to 4.4% and 3.96%, respectively.
- Dollar Index: The dollar advanced after President Trump expressed doubts about a potential ceasefire deal with Iran.
- Asian Currencies: Most Asian currencies traded lower, with the Philippine Peso leading the losses, followed by the Malaysian Ringgit, South Korean Won, New Taiwan Dollar, and the Chinese Renminbi.
- Crude: Crude oil prices fell in early trade on Friday, down over a volatile week, following President Trump’s announcement of a pause in attacks on Iran’s energy plants.
- Gold: Gold recovered some losses after President Trump pushed back his deadline for securing a deal with Iran.
- Fund Flow Action: On March 25, Foreign Institutional Investors (FIIs) sold equities worth ₹1,805 crore, while Domestic Institutional Investors (DIIs) bought equities worth ₹5,429 crore.
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