Before Market Opens: 9 essential things to know at 9 am on April 15, 2024

US stock market indices ended sharply lower on Friday after earnings of major US banks failed to impress and looming geopolitical tensions. The Dow Jones Industrial Average declined 475.84 points, or 1.24%, to 37,983.24, while the S&P 500 fell 75.65 points, or 1.46%, to 5,123.41. The Nasdaq Composite closed 267.10 points, or 1.62%, lower at 16,175.09.

Asian shares slumped and gold prices rose on Monday as risk sentiment took a hit after Iran’s retaliatory attack on Israel stoked fears of a wider regional conflict and kept traders on edge. Markets in Asia began the week on a cautious footing. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7% after Iran had, late on Saturday, launched explosive drones and missiles at Israel in retaliation for a suspected Israeli attack on its consulate in Syria on April 1. Japan’s Nikkei slid more than 1%, while Australia’s S&P/ASX 200 index lost 0.6%. Hong Kong’s Hang Seng Index slumped 0.8%.

On Friday, the Indian stock market indices ended a percent lower each dragged by selling across the board amid weak global cues. The Sensex plunged 793.25 points, or 1.06%, to close at 74,244.90, while the Nifty 50 settled 234.40 points, or 1.03%, lower at 22,519.40.

At 8:15 am, Gift Nifty was trading 134 points or 0.6 percent lower at 22,452, indicating a weak opening for the Indian markets.

Geopolitical tensions escalated in the Middle East after Iran launched more than 300 drones and missiles against military targets in Israel on Saturday night in response to a suspected Israel attack on Iran’s Syria consulate on April 1. Iran’s Islamic Revolution Guard Corps (IRGC) has confirmed the attack saying it was ‘aimed at specific targets’. Meanwhile, Israel is likely to strike back at Iran in retaliation.

Oil prices fell at Asia’s open on Monday, as market participants dialled back risk premiums following Iran’s attack on Israel late on Saturday which the Israeli government said caused limited damage. Brent futures for June delivery fell 24 cents to $90.21 a barrel while West Texas Intermediate (WTI) futures for May delivery were down 38 cents at $85.28 a barrel by 1256 GMT.

Gold prices edged up on Monday, hovering below a record high hit in the previous session, as escalating tensions in the Middle East lifted bullion’s safe-haven appeal. Spot gold was up 0.3% at $2,350.59 per ounce, as of 0056 GMT. Bullion hit an all-time high of 2,431.29 on Friday. U.S. gold futures fell 0.3% to $2,366.40 per ounce.

The US dollar stabilized on Monday after recording its most significant weekly increase since 2022. This stability comes amidst expectations of elevated interest rates and growing tensions in the Middle East. Last week, the dollar surged by 1.6% against a basket of six major currencies. Additionally, US two-year yields climbed by 15 basis points amid diminishing prospects for early interest rate reductions, with markets pricing in only a 50 basis-point cut for this year, and the first cut not fully anticipated until September.

In March, India’s retail inflation dipped to a 10-month low of 4.85% compared to 5.09% in the preceding month. Concurrently, the country’s industrial output, gauged by the Index of Industrial Production (IIP), surged to 5.7% in February from 3.8% in January 2024, signaling an uptick in the manufacturing segment of the Indian economy.

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Published: 15 Apr 2024, 08:34 AM IST