Global markets today: Amid uncertainty surrounding around the US-Iran deal for reopening of the Strait of Hormuz, and restrained investor sentiment global bourses are trading cautious. The US stock market finished slightly lower on Monday as the Dow Jones index went off 0.11% on Monday. S&P 500 index edged lower by 0.06%, while the Nasdaq index went down 0.32%.
In the Asian markets today, the Japanese Nikkei is closed today but the South Korean KOSPI went up around 1%, and Hong Kong’s Hang Seng index corrected 0.57%.
“Investor sentiment remains restrained as negotiations appear to have entered a more complex phase. U.S. President Donald Trump has called for compensation from Iran, while Tehran has reiterated conditions for reopening the Strait of Hormuz, raising doubts over the timing and durability of any potential agreement. Until greater clarity emerges, markets are likely to remain headline-driven, with investors reluctant to take aggressive directional positions,” said Ponmudi R, CEO at Enrich Money.
The Enrich Money expert said the WTI crude oil continues to hold on to its recent gains, trading near the $82-per-barrel mark as uncertainty surrounding the Strait of Hormuz negotiations keeps a geopolitical risk premium embedded in energy prices.
Crude oil pirce sustains a higher levels
Oil remained the dominant theme. WTI crude has gained roughly 9% over the past three trading sessions, holding near $82 a barrel as hopes of a breakthrough on the Strait of Hormuz continued to fade. Iran’s Revolutionary Guards reiterated that the strategic waterway would not reopen until Washington met a series of demands, including compensation for war-related damages and an end to the naval blockade.
US President Donald Trump, meanwhile, called on Iran to provide compensation, further dimming prospects for a near-term agreement. With higher oil prices reviving inflation concerns ahead of this week’s key U.S. inflation data and Treasury auctions, investors will be closely watching the direction of Treasury yields.
Global markets’ equity heatmap
Here we list out the equity heatmap of the global markets today:
US stocks
The US equities equities were little changed on Monday, pausing just below record highs as crude oil extended its rally amid fading hopes of an early agreement to reopen the Strait of Hormuz. The S&P 500 slipped 0.06%, the Dow Jones Industrial Average eased 0.11%, and the Nasdaq Composite declined 0.32%, as momentum cooled following last week’s powerful rally.
The subdued session came after a strong week in which all three major indices posted their biggest weekly gains since April, with the S&P 500 rising 3.58%, the Nasdaq surging 5.19%, and the Dow advancing 2.96%. The rally was driven by Friday’s unexpectedly weak U.S. jobs report, which significantly reduced expectations of a near-term Federal Reserve rate hike.
Asian markets today
Asian markets traded cautiously on Tuesday as investors awaited this week’s key US inflation reports. South Korea’s Kospi fell more than 1% in early trade before recovering to trade broadly flat as the session progressed. Japan’s Nikkei 225 remained closed for a public holiday, resulting in lighter trading volumes across the region. Hong Kong’s Hang Seng index corrected 0.57% in the early morning dealings on Tuesday.
European stocks pause near record highs
European equities closed mixed on Monday, holding just below record highs as investors balanced geopolitical uncertainty in the Middle East against continued support from corporate earnings and easing expectations of further US monetary tightening.
The pan-European STOXX 600 was broadly unchanged after posting its strongest weekly advance since late June. Germany’s DAX, France’s CAC 40, and London’s FTSE 100 also finished little changed. Energy stocks remained in focus as WTI crude climbed to around $82 a barrel, extending its recent gains and remaining the dominant cross-asset theme at the start of the week.
What does it mean for the Indian stock market today?
Reflecting a cautious sentiment, the Gift Nifty live price is oscillating around yesterday’s spot Nifty close. This means the Indian stock market may have a flat start on Tuesay.
Speaking on the outlook of the Indian stock market today, Ponmudi of Enrich Money said, “Indian equity markets are expected to trade with a cautious bias as uncertainty surrounding U.S.-Iran negotiations over the reopening of the Strait of Hormuz continues to weigh on global risk sentiment.”
Nifty 50 to Sensex today: Outlook for key indices
Speaking on the outlook for the Nifty 50 / Sensex today, Shrikant Chouhan, Head Equity Research at Kotak Securities, said, “For traders now, 24,650/78,800 and 24,700/79,000 would act as immediate resistance levels. Above these, the market could move to 24,800 / 79,300. On the flip side, below 24,500/78,300, selling pressure may accelerate. Below this, the market could retest levels of 24,400–24,350 / 78,000–77,800.”
On the outlook for the Bank Nifty today, Vatsal Bhuva, Technical Analyst at LKP Securities, said, “The Bank Nifty continues to consolidate in a tight range, with immediate support placed at 57,400–57,350 levels and resistance at 58,200. Momentum has moderated, as the RSI remains around 52, indicating a loss of momentum but no clear bearish signal. The index needs to sustain above 58,200 and decisively break 58,500–58,513, which coincides with the recent swing high and descending trendline, for a fresh upside move. On the downside, a break below 57,350 may trigger further weakness. Until a decisive breakout occurs, traders can adopt a range-bound approach.”
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
