Global Markets Remain Muted Amid Mixed Signals From Warfront

Global equity markets maintained a muted show on Friday as the United States-Israel-Iran war showed no sign of ending, with Donald Trump sending troops to the Gulf region while also signalling constructive talks with Iran.

From the US to Japan and Hong Kong, equity indices showed marginal gains or losses, in contrast to the steep gains seen as peace talks progressed earlier.

Dow Futures and S&P Futures were marginally higher by 0.56 percent and 0.64 percent, respectively, according to Bloomberg TV as of 1:30 ET on March 27.

The muted run came after the Dow Jones and S&P 500 slipped in Thursday’s trade, ending lower by 1 percent (469 points) and 1.74 percent (114 points), respectively, while the Nasdaq declined almost 2.38 percent, or 521 points, to close at around 21,408.

Asian markets followed their American peers, with Japan’s Nikkei rising just 100 points, or 0.19 percent, while South Korea’s Kospi posted a marginal decline of 0.06 percent, according to Bloomberg TV. Hong Kong’s Hang Seng also showed a marginal gain of 211 points, or 0.83 percent.

On the domestic front, India’s Sensex and Nifty faced a sell-off on Friday after remaining closed on Thursday. On Friday, the Sensex was down by 1.47 percent, or 1,106 points, while the Nifty was trading lower by close to 1.42 percent, or 330 points.

The broader stability in the markets came as the war in West Asia showed no signs of de-escalation, even as peace talks continued. The US President Donald Trump has also extended the halt on attacks on Iran’s energy infrastructure till April 6.

While the developments were positive enough for markets, the extension also meant that the deadline to reopen the Strait of Hormuz was postponed.

At the same time, the US is planning to send 10,000 more troops to the Middle East, raising fears of a ground assault. Trump has also indicated taking control of Iranian oil if peace talks fail.