Global Markets In Wait-and-Watch Mode As Peace Talks Derail

Global equity markets on Monday remained muted as diplomatic efforts against the war seemed to fail again.

Dow Futures and S&P Futures were trading almost flat, with marginal losses of 0.7 percent and 0.6 percent, respectively, according to Bloomberg TV, as of 2:00 ET on April 20.

This was in contrast to the rise in the Dow and S&P 500 on Friday. While the former had ended almost 1.8 percent higher, or 868 points, the latter rose 1.2 percent, or 84 points.

Asian markets on Monday were trading marginally higher. Japan’s Nikkei was up by almost 0.8 percent, or 457 points, while South Korea’s Kospi gained over 1 percent. Hong Kong’s Hang Seng remained muted with a small gain of 0.5 percent, or 135 points.

On the domestic front, India’s Sensex and Nifty were trading stable, with a modest rise of 0.25 percent each after opening lower in the morning.

The muted show of the markets came after the situation at the war front again seemed to be worsening.

The United States on Sunday seized an Iranian-flagged cargo ship that tried to get past the former’s naval blockade near the Strait of Hormuz.

While Iran has called this an act of “armed piracy”, US President Donald Trump has again warned Iran of attacking its energy infrastructure if it does not accept the deal offered by America.

“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” Trump said in a social media post.

Trump has said that negotiators from the American side will be visiting Islamabad for peace talks. On the other hand, Iran may skip the talks after the US seized its cargo ship.