Global markets today: As renewed strength in crude oil prices and a sharp rise in global bond yields continue to weigh on investor sentiment, the global markets cue continue to remain weak. Key indices of the US stock market finsihed lower on Tuesday, while the Asian markets are reeling under the sell-off heat during the early morning dealings on Wednesday. The Japanese Nikkei 225 index is down by around 2.50%, the South Korean KOSPI crashed more than 5.50%, and Hong Kong’s Hang Seng index is oscillating around its Tuesday’s close. The key benchmark indices of the China stock market are also down up to 4%.
Crude oil prices soar on the US-Iran standoff
Crude oil remains firmly in focus, with WTI trading in the $84–$85 per barrel range as the US–Iran standoff continues with no clear path toward a negotiated resolution.
US Fed minutes in focus
Investor attention will now turn to the minutes of the Federal Reserve’s July policy meeting, which are expected to provide further insight into policymakers’ views on inflation, economic growth and the interest-rate outlook following last month’s unusually divided decision. Any shift in expectations surrounding the Fed’s policy trajectory could have important implications for US Treasury yields, the dollar and capital flows into emerging markets, including India.
Global markets’ equity heatmap
Here we list out the equity heatmap of the global markets today:
US stock market: Bond yield, chip sell-off weigh
US equities fell for a third straight session on Tuesday as a sharp selloff in semiconductor stocks and surging bond yields rattled markets. The S&P 500 declined 0.69%, the Nasdaq Composite lost 1.33%, and the Dow Jones Industrial Average shed 0.22%. Memory-chip makers were hit hardest, with Western Digital falling 7%, Sandisk dropping 9%, Marvell Technology down nearly 8%, and Seagate Technology sliding more than 9%, as a closely watched semiconductor gauge tumbled 5.5%.
The US 30-year Treasury yield hit a fresh 19-year high, while Japan’s 10-year government bond yield reached its highest level in three decades and Germany’s 30-year bond yield climbed to its highest level since 2011, as investors grew increasingly anxious that elevated oil prices could keep inflation sticky.
Asian markets today: KOSPI triggers circuit breaker
Asian markets are selling off sharply this morning as the memory-chip rout that hammered Wall Street overnight spreads across the region. South Korea’s KOSPI index opened down 5%, with losses widening to as much as 6.39%, prompting the Korea Exchange to activate a sidecar mechanism suspending program sell orders. SK Hynix, Samsung Electronics, and SK Square all came under heavy pressure.
Japan’s Nikkei 225 is down 2.57%, while the Topix has declined 2.4%, as Kioxia and SoftBank Group also came under selling pressure. The rout follows the overnight collapse in US memory-chip stocks, with Micron Technology, Western Digital, Sandisk, and Seagate all posting steep declines as investors reassess whether recent AI-driven chip valuations have run too far, too fast.
In China stock market, the Shanghai index is down by around 2%, the DJ Shanghai index crashed over 2.50%, the SZSE Component Index nosedived around 4%, while the China A50 index went off around 1.95%.
European markets: STOXX 600 hits two-week low
European equities fell to a more than two-week low on Tuesday, with the pan-European STOXX 600 closing 0.69% lower in its worst session in nearly a month, as investors grappled with surging bond yields and renewed inflation concerns. Germany’s DAX and France’s CAC 40 both fell more than 0.80%, while London’s FTSE 100 ended marginally higher, up 0.07%.
President Trump’s denial of ongoing talks with Iran added to geopolitical uncertainty, with European bourses tracking lower through the day as traders backed away from technology stocks and awaited developments in the Persian Gulf. Global bond yields surged to multi-year highs across the region, with concerns over fiscal health compounding the pressure on equities.
What does it mean for the Indian stock market?
Early indications from GIFT Nifty futures, trading around the 24,200 mark compared with the Nifty’s previous close of 24,154, point to a largely flat opening for domestic equities.
Expecting a flat opening for the Indian stock market, Ponmudi R, CEO at Enrich Money, said, “Indian equity markets are expected to remain under pressure as renewed strength in crude oil prices and a sharp rise in global bond yields continue to weigh on investor sentiment. The expiry of the temporary 60-day US-Iran ceasefire without any meaningful diplomatic breakthrough has renewed concerns over a prolonged disruption to energy supplies, driving crude oil prices higher and pushing long-term US Treasury yields to multi-year highs. The combination has triggered a broad risk-off mood across global financial markets.”
Nifty 50 to Sensex today: Outlook for the key indices
Speaking on the outlook for the Nifty 50 / Sensex today, Shrikant Chouhan, Head Equity Research at Kotak Securities, said, “For day traders now, 24,400/78000 would act as an immediate resistance zone for the bulls. If the market succeeds in trading above this level, it could bounce back to 24,500-24,620/80200-80500. On the flip side, a break below 24,220/77500 could accelerate selling pressure. Below this, the market could retest the levels of 24,100-24,050/77200-77000.”
On the outlook of the Bank Nifty today, Vatsal Bhuva, Technical Analyst at LKP Securities, said, “Bank Nifty closed with a small candlestick on the daily chart, remaining below both its 200-DMA and 50-DMA, indicating a cautious to slightly bearish bias. The index has support placed at 57,000, while 57,800 remains the immediate resistance. Across timeframes, there is currently no clear indication of a breakout from this range, highlighting a tug-of-war between bulls and bears. A decisive breakout above 57,800 or breakdown below 57,000 could trigger directional momentum. Until then, the index is likely to remain range-bound and can be traded within these levels.”
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.
