This week, global markets experienced mixed performances as geopolitical tensions and rising crude oil prices impacted investor sentiment. From October 7 to October 11, markets showed resilience in some regions while others felt the pressure from global events such as the Middle East conflict between Iran and Israel. Let’s take a look at how the markets performed.
Indian Market: Nifty and Sensex Overview
India’s Nifty 50 saw a decline of 0.46%, losing 115.40 points over the past five days, closing at 24,964.25 on October 11. Similarly, the BSE Sensex ended the week at 81,381.36, down by 601.73 points or 0.73%. The Indian market faced challenges due to external pressures like rising crude oil prices and geopolitical tensions. Despite the BJP’s win in the Haryana elections, the markets struggled to gather momentum amid these external pressures.
Indian Stock Market Update for This Week: Oil price surge and TCS earnings weigh on markets
Geopolitical Tensions and Crude Oil Prices
One of the main factors affecting the global markets this week has been the escalating tensions in the Middle East, particularly between Iran and Israel. These tensions contributed to crude oil prices reaching new highs, raising concerns about inflation and higher energy costs globally. Rising crude prices have a direct impact on the economy, especially for countries like India that rely heavily on oil imports.
Asian Market Performance
- Nikkei 225 (Japan): The Japanese Nikkei 225 index rose by 0.93% this week, closing at 39,605.80. The optimism about Japan’s economic recovery helped the index maintain a positive performance despite external geopolitical risks.
- Hang Seng Index (Hong Kong): The Hang Seng Index struggled this week, declining by 3.47% and closing at 21,251.98. Concerns about China’s economy and Middle East tensions weighed heavily on investor sentiment in Hong Kong.
- Kospi (South Korea): The Kospi index rose by 1.30%, ending at 2,596.91. South Korean markets were buoyed by gains in the tech sector and favorable market conditions.
Asian Markets Update for This Week: Mixed performance as investors await China’s fiscal stimulus
US Market: Nasdaq and Dow Jones
The US markets saw a more positive performance this week, driven by strong corporate earnings and relative stability in the domestic economy.
- Nasdaq Composite: The Nasdaq Composite increased by 1.45% to close at 18,342.94, reflecting a gain of 262.82 points. Tech stocks led the rally, with investors showing confidence in the sector’s future prospects.
- Dow Jones Industrial Average: The Dow Jones ended the week with a 1.36% increase, closing at 42,863.86, buoyed by positive economic data and easing inflation concerns.
U.S. Markets Update for This Week: Strong bank earnings and fed rate cut hopes drive gains
China Market reopens after holiday
The Shanghai Composite reopened this week after a 7-day holiday break, adding some volatility to the Asian markets. China’s market remains sensitive to both domestic and global economic conditions, and its reopening had a noticeable impact on the region’s market performance.
China ramps up economic support amid deflation concerns, but economists remain skeptical
This week highlighted the interconnectedness of global markets, with geopolitical tensions, rising crude oil prices, and local political developments all playing a role in market movements. While some markets like the US and Japan performed well, others, such as Hong Kong, struggled with regional concerns.
