Global Markets Break Losing Streak as Trump Signals War Could End in 3 Weeks

Global equity markets showed a mixed trend on Tuesday as the United States-Israel-Iran war continued along diverging paths of attacks and peace talks.

While American and European markets inched marginally higher, indices in Asian markets traded in the red.

Dow Futures and S&P Futures were marginally higher by 0.12 percent and 0.22 percent, respectively, according to Bloomberg TV, as of 1:30 ET on April 1.

The weak trend was in contrast to the significant gains in US markets, where the Dow Jones rose by 2.5 percent (1,125 points), while the S&P 500 rose 2.9 percent (184 points). The Nasdaq also jumped over 3.8 percent, or 795 points, to close at around 21,590.

Taking cues from American peers, Asian markets also jumped, with Japan’s Nikkei rising over 4.6 percent, or 2,359 points, while South Korea’s Kospi climbed over 9 percent. Hong Kong’s Hang Seng also rose by 478 points, or almost 2 percent.

On the domestic front, India’s Sensex and Nifty also shed Monday’s losses. The indices rose over 2 percent each in Wednesday’s trade.

The strong upsurge in equity markets across the world came as the United States President indicated leaving Iran even in the absence of a deal.

He said the US may exit the war in 2-3 weeks, raising hopes of a cooling of hostilities and normalisation in trade activities.

A day before, Trump had suggested that he was willing to wind down the offensive against Iran soon even if the Strait of Hormuz does not reopen.

With energy prices surging to record highs, inflationary pressures rising, and the war bill soaring, Trump is looking to end or leave the war as soon as possible, while maintaining a tough stance in statements.

His administration’s assessment suggests that efforts to forcibly reopen the Strait could prolong the war beyond the preferred timeline of four to six weeks.

Before ending the war, the US would ensure it significantly weakens Iran’s naval and military capabilities.