Global equity markets traded in the red on Monday as the United States-Israel-Iran war appeared to extend further, with Houthi rebels in Yemen joining in.
From the US to Japan and Hong Kong, equity indices posted declines of 1–3 percent as the war entered its second month.
Dow Futures and S&P Futures were marginally higher by 0.07 percent and 0.16 percent, respectively, according to Bloomberg TV as of 2:30 ET on March 30.
The weak trend followed losses in US markets, where the Dow Jones and S&P 500 fell by 1.73 percent (793 points) and 1.67 percent (108 points), respectively, while the Nasdaq declined 2.15 percent, or 459 points, to close at around 20,948.
Asian markets followed their American peers, with Japan’s Nikkei shedding over 3 percent, or 1,640 points, while South Korea’s Kospi declined by almost 3.2 percent. Hong Kong’s Hang Seng also fell by 224 points, or 0.9 percent.
On the domestic front, India’s Sensex and Nifty faced a sell-off on Monday. The Sensex was down by almost 1.6 percent, or 1,160 points, while the Nifty was trading lower by close to 1.48 percent, or 337 points.
The sell-off came as the war showed signs of further escalation, with Iran-backed Houthi rebels attacking Israel, even as peace talks between Iran and the US continued without significant progress.
US President Donald Trump has extended the halt on attacks on Iran’s energy infrastructure until April 6.
While this was seen as a positive step, it also delayed the reopening of the Strait of Hormuz.
At the same time, the US has allowed the deployment of 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.
