Stock Index

Indian equities opened sharply lower on Friday as escalating tensions in West Asia pushed Brent crude above USD 108 a barrel. The Nifty 50 opened down 0.88% at 23,270.30, while the BSE Sensex slipped 0.79% to 74,309.16. Nifty Metal led sector losses at the open, down 2.46%.

India’s benchmark equity indices opened sharply lower on Friday, with the Nifty 50 down 0.88% and the Sensex off 0.79%, as escalating West Asia tensions and a jump in crude prices stoked concerns over higher energy import costs. Brent crude was trading around USD 108.27 per barrel. Analysts said persistently high oil prices could materially weigh on India’s GDP growth and corporate earnings.

India’s Sensex was down more than 500 points in pre-open trade on Friday, while the Nifty slipped below 23,300. Asian markets also moved lower as rising U.S. bond yields and elevated oil prices weighed on risk appetite. WTI crude futures briefly touched $110 per barrel before easing, while gold and silver futures fell amid firmer expectations of a U.S. Federal Reserve rate hike.

A global selloff in bond markets has pushed government yields to multiyear highs, while escalating tensions in the Middle East lifted Brent crude to nearly $US109 a barrel and intensified inflation concerns. Investors are increasingly worried that highly valued equity markets are nearing a tipping point, and that central banks may be forced to raise rates in a way that triggers a recession. The Australian share market’s selloff has deepened amid those fears. A US Treasury debt buyback came in below expectations and did little to calm the bond-market turbulence.

Asian stocks and government bonds weakened as rising oil prices and fresh inflation data pressured risk appetite. The MSCI Asia Pacific Index fell 1.3%, with Japan and South Korea leading losses. Brent crude extended gains after climbing to almost $110 a barrel, lifting U.S. Treasury yields to multiyear highs. Faster-than-expected producer-price growth reinforced market expectations for a Federal Reserve rate increase.

The Dow fell 300 points on Thursday, taking its four-session decline to more than 1,600 points, while the S&P 500 and Nasdaq each dropped 0.6%. Brent crude rose above $107 a barrel and WTI topped $100 as markets worried about a prolonged war between the US and Iran. US Treasuries sold off broadly, with the 10-year yield rising to 4.96%, the highest since November 2023, and the 30-year yield nearing 5.4%, a level not seen since 2007.

Stronger-than-expected U.S. wholesale inflation data rekindled concerns that interest rates may stay higher for longer. The Dow, S&P 500 and Nasdaq all fell about 0.6% as U.S. 10-year Treasury yields rose to 4.96%. Brent crude climbed above $100 a barrel for the first time since July, adding to inflation worries. The European Central Bank raised its key rate by 25 basis points to 2.50%.

U.S. stocks finished lower, with the S&P 500 down 0.58%, the Nasdaq Composite off 0.64% and the Dow Jones Industrial Average falling 0.60%. Brent crude jumped 6% to $107 a barrel and U.S. Treasury yields rose to multiyear highs, reinforcing expectations for a Federal Reserve rate hike next week. Markets also weighed the risk that U.S.-Israeli military action on Iran could disrupt supply routes through the Strait of Hormuz and the Red Sea, adding to energy costs and inflation pressure.

US stocks fell as oil prices crossed $100, raising inflation fears. Dow, S&P 500 and Nasdaq dropped as investors watched Fed rate cut hopes. | Business News

A hotter-than-expected U.S. producer price index (PPI) reading for August reinforced expectations that the Federal Reserve could raise interest rates this month, pushing the three major U.S. stock indexes lower at Thursday’s open. Escalating tensions in the Middle East also lifted oil prices above $100 a barrel, adding to inflation concerns and weighing on sentiment.