Geopolitical Tensions in West Asia Shake Global Markets

Equity indices in the Asia-Pacific region closed on a negative note on Friday following escalating geopolitical tensions in West Asia. The GIFT Nifty was trading down, indicating a weak opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. In Asian markets, Japan’s Nikkei 225 showed a slight rise, while the Shanghai Composite traded lower. The Asia Dow and Hang Seng both saw negative movements, reflecting the impact of the geopolitical situation.

Foreign institutional investors (FII) sold shares net worth Rs 8,027.00 crore, while domestic institutional investors (DII) sold shares net worth Rs 6,341.53 crore on April 12, 2024. This data indicates the mixed sentiments among investors in response to the geopolitical tensions and market fluctuations.

WTI and Brent crude oil prices faced declines on Monday morning amid the heightened geopolitical risks. WTI crude was trading at $84.93, down by 0.85%, while Brent crude prices stood at $89.87, reflecting a 0.74% decrease. These price movements demonstrate the impact of geopolitical uncertainty on energy markets.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded slightly higher at 106.06. This uptick in the dollar index reflects a flight to safety by investors amidst the escalating geopolitical tensions, highlighting the role of global currencies in responding to geopolitical events.

Geopolitical tensions escalated further as Iran launched drone and missile strikes on Israel over the weekend, triggering fears of broader conflict. The Wall Street indices in the US closed lower on Friday, with the S&P 500, Dow Jones, and Nasdaq Composite all finishing in the red. These developments highlight the global repercussions of regional conflicts and the interconnectedness of financial markets.