Global markets today: The global equity heatmap is expected to remain on a cautious footing, as persistent tensions in the Middle East and elevated crude oil prices continue to temper risk appetite. The US stock market ended higher on Friday, but amid escalating tensions in the Middle East and soaring crude oil prices, Asian markets are trading soft today. The Japanese Nikkei index is down by around 0.15%, the South Korean KOSPI index crashed by over 3%, and Hong Kong’s Hang Seng index nosedived by over 2% during early-morning trading on Monday.
On triggers that may dictate the global markets today, including Dalal Street, Ponmudi R, CEO at Enrich Money, said, “Crude prices remain firm, with WTI trading near $86 a barrel as markets brace for fresh US sanctions against Iran amid an already prolonged geopolitical standoff.”
Triggers for global markets today
The Enrich Money expert said the Middle East tensions continue to shape the broader market mood. Iran has warned of retaliation against countries participating in the US “economic war,” reinforcing concerns that the confrontation could deepen rather than ease in the near term. For Indian investors, the prolonged US-Iran standoff and its implications for energy prices remain a key source of uncertainty.
Global equity heatmap
Here we list out the equity heatmap of the global markets today:
US stock market jumps
US stocks rose on Friday to cap a choppy week, even as the major averages posted weekly losses amid sharp volatility in the bond market. The S&P 500 and Nasdaq Composite each gained 0.43%, while the Dow Jones Industrial Average jumped 0.98%, supported by gains in healthcare names such as Merck and Johnson & Johnson.
A report showing that US business activity grew at its fastest pace in more than four years lifted sentiment, while financials also received a boost as Bitcoin surged toward $77,000, marking its best week in two years.
Robinhood jumped almost 14%, while Coinbase added 8%. Despite Friday’s gains, all major indexes still ended the week lower after a bond sell-off earlier in the week pressured riskier assets. Markets now look ahead to a pivotal week featuring Nvidia’s earnings on Wednesday and the Fed’s Jackson Hole symposium, both seen as key tests for the AI trade and the path of interest rates.
Asian markets today
Asian markets enter the new week cautiously, with the Nikkei 225 index trading largely flat and the South Korean KOSPI down over 3%, after a week in which the Nikkei shed nearly 4% and snapped a two-week winning streak. Hong Kong’s Hang Seng index is down by around 2.10%.
In the Chinese stock market, the Shanghai index dipped around 0.75%, the DJ Shanghai index nosedived around 1.15%, and the China A50 index fell around 1.10%.
On reasons for the Asian markets trading soft on Monday, Ponmudi said, “The region now turns its attention to a pivotal week ahead, with Nvidia’s earnings due Wednesday and seen as a critical test for AI-related valuations, alongside the Fed’s Jackson Hole symposium, which could offer fresh clues on the path of U.S. interest rates. Elevated crude oil prices, with WTI above $85 a barrel, continue to weigh on the broader risk tone across the region.”
European markets
European equities closed higher on Friday, trimming the week’s losses with support from heavyweight banks and luxury brands. The STOXX 600 and Germany’s DAX both gained 0.59%, even as the week overall ended lower—the STOXX 600 fell 0.6% for the week, while the DAX declined 1.15%. France’s CAC 40 rose 0.37%, and London’s FTSE 100 added 0.64%. Santander surged 2.7%, while BNP Paribas, Deutsche Bank, BBVA, and Nordea also advanced. Luxury names LVMH, Adidas, Hermès, and Ferrari jumped between 1.5% and 2.3%.
Elevated oil prices remained a persistent overhang, with WTI ending the previous week with a 6.90% gain and continuing to trade above $85 per barrel as the US pressed ahead with tougher economic sanctions on Iran.
What does it mean for the Indian stock market?
Early indications from GIFT Nifty futures, trading in the 24,300–24,350 range against the Nifty’s previous close of 24,252, suggest a largely flat to marginally positive start for domestic equities.
However, Ponmudi of Enrich Money warned Indian traders to remain vigilant about the major riggers and suggested not to get carried away by the Gift Nifty live price, saying, “Indian equity markets are set to begin the week on a cautious footing as persistent Middle East tensions and elevated crude oil prices continue to temper risk appetite.”
Nifty 50 to Sensex today: Outlook for the key indices
Speaking on the outlook for the Nifty 50 / Sensex today, Amol Athawale, VP — Technical Research, Kotak Securities, said, “Technically, the short-term market outlook remains weak. However, the 50-day SMA, or the 24,150 level, and, for Sensex, 76,900, are expected to act as crucial support zones for traders. As long as the market trades above this level, a pullback formation is likely to continue. On the higher side, the market could bounce back to the 20-day SMA or around 24,400/78000. A successful breakout above 24,400/78000 could push the market towards the 24,500-24,700/78,300-78,900 range.”
The Kotak Securities expert said that on the flip side, if the market falls below 24,150/76,900, sentiment could turn negative. Below this level, selling pressure is likely to accelerate, and the index could retest the 24,000/76,400 level. Further downward movement could also continue, potentially dragging the index to the 23,850-23,800/75,900-75,700 range.
“For Bank Nifty, the 200-day SMA at 57,500 will act as a trend-deciding level for traders. Above this, the index could rally toward 58,000-58,500. Conversely, below 57,500, it could decline toward 57,000-56,700,” Amol Athawale of Kotak Securities said.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
