Global financial markets : experienced a significant downturn on Monday, spurred by rising concerns over a potential US recession and escalating geopolitical tensions in the Middle East. The sell-off extended across equity markets, currencies, cryptocurrencies, and commodities, with major indices and assets witnessing sharp declines. Global Market Crash
In India, benchmark indices Nifty 50 and Sensex plunged over 3% each, marking one of the worst trading sessions in recent times. The Sensex dropped 2,450.32 points (3.03%) to 78,531.63, while the Nifty 50 fell 696.35 points (2.82%) to 24,021.35. Investors lost nearly ₹15 lakh crore, as the market capitalization of BSE-listed companies decreased significantly. Analysts suggest this sell-off is likely a short-term correction driven by profit booking rather than an indication of long-term market panic. Global Market Crash
Asian markets mirrored the global downturn. Japan’s Nikkei 225 experienced a historic plunge, falling 12.40% (4,451.28 points) to 31,458.42, as the yen surged to its highest levels since January. The broader Topix index also declined by 12.23%. South Korea’s Kospi dropped 8.1% before a 20-minute trading halt, while Taiwan’s Weighted Index and Hong Kong’s Hang Seng index fell 8% and 1.61%, respectively.
US stock futures indicated further declines, with Nasdaq 100 futures down over 6%, S&P 500 contracts dropping more than 3%, and Dow Jones futures falling by over 1%. The bond market saw a sharp drop in yields, with the US 10-year Treasury yield hitting its lowest level since December. The decline was driven by rising expectations of aggressive rate cuts by the Federal Reserve, as recent data showed a weakening US jobs market. Global Market Crash
The Indian rupee hit a record low of 83.82 against the US dollar, reflecting the broader trend of currency depreciation amidst market turmoil. The Japanese yen, a traditional safe haven, surged against the dollar, exacerbating fears of further sell-offs by foreign investors.
Global Market Crash
The cryptocurrency market was not spared, with Bitcoin prices falling by around 15%, trading at $51,323.58. Ethereum and other major cryptocurrencies also faced heavy losses, with Ethereum declining by 22.3%.
Gold prices rose as investors sought safe-haven assets amidst the market volatility. Spot gold increased by 0.14% to $2,446.83 per ounce, while US gold futures rose by 0.8% to $2,488.50. In contrast, silver prices fell, and crude oil prices dipped, reflecting concerns over global economic conditions.
Analysts expect continued volatility in the markets, with a potential focus on the upcoming Reserve Bank of India’s policy decision and global economic indicators. The Indian markets, despite the steep decline, remain above key technical levels, providing some support in the near term.
Investors are advised to consider staggered entries into the market during volatile periods and to closely monitor geopolitical developments and central bank policies. The global market’s response to these factors will likely determine the direction of the financial markets in the coming days.
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