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 0.8 percent and 0.7 percent, respectively, according to Bloomberg TV as of 2:30 ET on March 31.
The weak trend followed marginal changes in US markets, where the Dow Jones rose by 0.11 percent (49 points), while the S&P 500 declined 0.4 percent (25 points). The Nasdaq also declined 0.73 percent, or 153 points, to close at around 20,794.
The sell-off in Asian markets was more pronounced, with Japan’s Nikkei shedding over 1.2 percent, or 648 points, while South Korea’s Kospi plunged over 4 percent. Hong Kong’s Hang Seng also fell by 85 points, or 0.3 percent.
On the domestic front, India’s Sensex and Nifty remained closed on account of Mahavir Jayanti. The indices had declined over 2 percent in Monday’s trade.
The mixed performance across markets came as the war in the Gulf region continued amid ongoing peace talks.
While US President Donald Trump is willing to wind down the offensive against Iran soon, he may do so even if the Strait of Hormuz does not reopen.
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.
President Trump had earlier extended the deadline for Iran to reopen the Strait to April 6, stating that both sides were having positive discussions to end the war.
However, Israel and Iran have continued to attack each other’s assets in the region.
Another development limiting price easing was Iran’s attack on a Kuwaiti oil tanker anchored at Dubai port. Al Salmi, the tanker with a capacity of 2 million barrels, was fully laden at the time of the attack.
