Global Markets Continue Muted Show On Tuesday As US Allies Refuse To Join Hormuz Efforts

Global equity indices remained muted on Tuesday even as energy prices remained elevated amid the United States-Israel-Iran war entered its third week.

From the US to Japan and Hong Kong, the equity indices did not show much movement, unlike major swings earlier based on comments from the warring sides.

Though Trump has been asking allies to help open the crucial Strait of Hormuz, European nations have declined to join him in the effort.

Dow Futures and S&P Futures were 0.2 percent and 0.21 percent lower, according to Bloomberg TV as of 1:00 ET on March 17.

The muted run came after Dow Jones and S&P 500 ended marginally higher on Monday with gains of 0.83 percent and 1.01 percent, respectively, while Nasdaq rose almost 1.22 percent, or 268 points, to close at around 22,374.

Asian markets followed cues with Japan’s Nikkei rising over 194 points or 0.36 percent while South Korean Kospi gained over 2.91 percent. Similarly, Hong Kong’s Hang Seng also jumped over 1.06 percent.

On the domestic front, India’s Sensex and Nifty also traded with marginal gains. While the former was up 0.28 percent, or 213 points, the latter was trading at a gain of close to 0.31 percent.

According to experts, investors are also waiting for the policy rate announcements by various central banks this week, including the US Federal Reserve which is expected to maintain the status quo on rates as inflation in America remains above the Fed’s 2 percent target.

On the energy front, crude oil prices continued to rise with the global benchmark Brent Crude hovering around the $103 per barrel mark. This is a rise of almost 2.80 percent from its previous close. The American WTI Crude also jumped close to $96 per barrel.

Investors have turned cautious, expecting the crisis may stay for longer than anticipated by the Donald Trump administration.

According to a report by Goldman Sachs, the surge in energy prices stemming from the war could shave about 0.3 percent off global GDP over the next year.