Geopolitical tensions Financial News

Cryptocurrency markets fell sharply on Thursday as geopolitical tensions intensified after Iran launched missile strikes on Israel. Bitcoin dropped below $60,500, while major altcoins such as Ethereum, Solana, XRP, and Dogecoin saw declines ranging from 5-15%. As of 2:49 pm IST, Bitcoin slipped 1.8% to $60,492, while Ethereum plunged 5.4% to $2,339. The global cryptocurrency market cap fell by 3.7% to approximately $2.09 trillion in the past 24 hours.

Global equities turned lower on Thursday amid weak US manufacturing data, which raised doubts about the US economy and countered optimism about potential Federal Reserve interest rate cuts.

Bank of England cut interest rates from a 16-year high. Concerns about a widening conflict in the Middle East intensified this week after Hamas leader Ismail Haniyeh was assassinated in the Iranian capital Tehran on Wednesday morning, an attack that drew threats of revenge on Israel.

Also Read: Gold price today: MCX Gold falls over half a per cent; what should be your strategy for bullion today? However, Brent crude oil was trading 0.92% lower at $82.94 a barrel, while the US West Texas Intermediate (WTI) crude futures was down 0.80% to $79.16 per barrel. MCX crude oil prices fell 0.41% to ₹6,552.

Also Read: Oil traders stay bullish as Brent hovers at $90: ‘Crude to stay elevated even if Middle East tensions cool down’ The elevation in crude prices also comes as OPEC, the group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, last kept its oil supply policy unchanged and pressed some countries to increase compliance with output cuts. Morgan Stanley said that with OPEC supply restraints, some downside to Russia production, and a seasonal upswing in demand ahead, it expects tightness in the second and third quarters.

Why are gold and US dollar rates moving in same direction? — explained In March, China's central bank disclosed an addition of 160,000 troy ounces of gold to its reserves. Alongside, countries including Turkey, India, Kazakhstan, and various Eastern European nations have also engaged in gold purchases throughout the year. “The gold and silver market continues its relentless climb.

Also Read: Oil market oversupplied with record-high US output, Brent seen at $87-$92 for 2024: ShareKhan's Mohammed Imran Tighter Markets: Physical markets tightened following a seasonal pattern in February. However, the more significant driver for the uptick in prices was the decision by the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to extend production cuts from March 2024 to June 2024.

Sensex gained 190.75 points, or 0.26%, to close at 72,831.94, while the Nifty 50 settled 84.80 points, or 0.39%, higher at 22,096.75. In the last week of March, investors will now keep an eye on several stock market triggers including domestic macroeconomic data, government announcements on fiscal closing, foreign capital inflow, and other global market cues. “This week being a truncated week and the derivatives’ monthly expiry, we might see some volatility while Nifty is likely to consolidate at higher levels.

Also Read: Will the rise in crude oil prices impact the markets in the near term? Moreover, the recent surge in geopolitical tensions has further propelled oil prices upward. Notably, Ukraine's launch of drone attacks on Russian oil refineries, including Lukoil Nizhny, Rosneft Ryazan, and Surgut Kirishi, has caused partial shutdowns.

UNCTAD) has raised alarm over the disruption in global trade due to the ongoing crisis in the Red Sea shipping route stating that it would “particularly” hurt developing nations and warned that it is impacting global food prices with longer cargo travel distances and higher freight rates potentially leading to higher costs. “Disruptions in grain shipments from Europe, the Russian Federation and Ukraine

Oil prices eased in early trade on Tuesday as anxiety over the global demand outlook for oil offset geopolitical tensions in the Middle East and supply worries following an attack on a Russian fuel export terminal over the weekend.

Brent crude experienced a 90-cent increase, reaching $79.46 per barrel by 1450 GMT. Simultaneously, the front-month US West Texas Intermediate crude futures contract for February delivery saw a $1.10 rise, reaching $74.42 per barrel in subdued trading conditions as the contract approached its Monday expiration. The March WTI contract, which was more actively traded, rose by 91 cents to reach $74.16.

Gold, reeling under hotter than expected December US CPI inflation data released on Thursday, caught a bid Friday as the US and the UK launched airstrikes on Iran-backed Houthis' targets in Yemen to stop shipping attacks in the Red Sea. In a reaction, the Yemeni Group vowed to retaliate with an urgent response in the form of a move that intends to target all US and UK interests alongside those linked to Israel. The strike by the US and UK, which included more than 70 airstrikes on Yemen targets, risks spreading fallout from Israel-Hamas war, which, in the worst-case scenario, can drag in other regional powers more directly. It is to be noted that earlier in the week, Houthis launched their biggest shipping attacks and Iran seized an oil tanker off the Coast of Oman. The US government has not ruled out more strikes on the Houthis targets.

BSE Midcap index closed 0.20 per cent higher at 37,081.58 while the BSE Smallcap index ended with a gain of 0.30 per cent at 43,103.61. (Exciting news! Mint is now on WhatsApp Channels.

Amid escalating geopolitical risks in the past few months, attention has turned to defense stocks. While challenges in the defense industry have affected their performance relative to the index since last year, the continued influx of orders these companies are receiving suggests things could be about to change for this sector.

Lisa Cook said on Wednesday. «We've experienced these geopolitical tensions that you're talking about, and certainly any shock could make the situation worse that we're already (in)… and could be destabilizing to commodity markets, could be destabilizing to the system of credit,» Cook said during a panel discussion at a conference hosted by the Central Bank of Ireland in Dublin. «We are watching and waiting. We're being vigilant and that's what we do.

Palestine culminated into a war. Prices disregarded the robust US economic release boosting bets of higher-for-longer interest rates which end up lifting the US currency and bond yields. Geopolitical tensions often have a significant impact on the performance of gold.

Foreign institutional investors (FIIs) continued to pull out money from the Indian market on Thursday leading to benchmark indices falling for the second consecutive day. Higher interest rate in the US coupled with geopolitical tensions in the Middle East have kept their spirits muted for quite some time.

Recent weeks have seen increased volatility in equity markets, primarily influenced by evolving expectations regarding Federal Reserve policy rates and geopolitical factors following the Israel-Hamas war.

Amit Sachdeva, India Equity Strategist, HSBC Securities, says “there are two vulnerabilities for India; one is obviously a geopolitical crisis. If it spirals out of control, then it might weigh on India's investment case. But US bond yields have also risen quite sharply. That has seen some outflow as well. But if you look at the overall picture for India's Goldilocks scenario, I would hazard a guess that India is in a decisive bull run and we are in the middle of it right now.” What is your take on the Israel-Palestine war? The way both local and global markets have been resilient, it looks like markets are saying this is not Russia and Ukraine. This is very localized and is unlikely to have a financial disruption. Geopolitical situations are always interesting and also hard to predict. One thing can lead to another. I am not going to call that out, to be honest. But the market obviously has taken a view that the situation will be contained. It would not spiral out of control, et cetera. So at least the market has taken that view. My sense is that could probably be the fair view as well. But more importantly, India's context is very interesting because India has been an outperforming region three years in a row. That makes many people wonder whether these rallies can continue. But I think we need to drill down into the entire Goldilocks scenario of India.

Investing.com — The S&P 500 climbed Monday, after cutting losses despite rising geopolitical tensions amid fears the Israel-Hamas conflict could spark a wider war in the Middle East.