Global Markets Today LIVE: Global markets staged a powerful relief rally on Wednesday, April 8, after the United States and Iran agreed to a two-week ceasefire, easing fears of a deeper Middle East conflict and triggering a sharp reversal across equities, commodities and currencies.
Wall Street futures also reflected the upbeat mood, with S&P 500 futures rising 2.7% and Nasdaq 100 futures gaining 3.3% as of 6:52 a.m. London time. In Europe, Euro Stoxx 50 futures surged 5.4%, signalling a strong opening for regional markets.
The ceasefire, which is expected to pause American-Israeli military action, also includes Iran’s agreement to reopen the Strait of Hormuz, a crucial oil shipping route that handles a significant share of global crude flows. Pakistan, which helped broker the understanding, said the arrangement would also extend to Israel-Hezbollah tensions in Lebanon.
The biggest immediate reaction came from the oil market. West Texas Intermediate (WTI) crude plunged as much as 19%, marking its steepest fall in nearly six years, while Brent crude dropped 14% to $93.90 per barrel. The sharp decline in oil prices boosted hopes of easing inflationary pressure and improved the outlook for global growth.
That optimism quickly spilled over into equity markets. MSCI’s Asia Pacific equity index jumped 5.1%, its highest level in five weeks, as investors moved back into risk assets. In Asia, Japan’s Topix rose 3.4%, Australia’s S&P/ASX 200 gained 2.6%, Hong Kong’s Hang Seng climbed 3.1%, and China’s Shanghai Composite added 2.5%.
Other asset classes also reacted sharply. U.S. Treasuries rallied, as falling oil prices revived hopes that softer inflation could eventually give the Federal Reserve more room to cut rates. Meanwhile, the U.S. dollar index slipped 1%, giving back some of the safe-haven gains it had made during the conflict.
Precious metals moved higher as well. Gold climbed 2.7% to around $4,835 per ounce, while silver surged 5.9% to above $77 per ounce, as investors balanced improving risk appetite with lingering geopolitical uncertainty.
Indian markets join the global rebound
Indian equities also participated strongly in the global risk-on rally, with benchmark indices ending the day with nearly 4% gains.
The Sensex closed 2,946 points, or 3.95%, higher at 77,563, while the Nifty 50 settled 874 points, or 3.78%, up at 23,997. During the session, the Sensex had surged 3,019 points, or 4%, to an intraday high of 77,635.54, while the Nifty 50 climbed 901 points, or 3.9%, to hit 24,025.15.
Sentiment on Dalal Street was further supported by the sharp fall in crude oil prices, a weaker U.S. dollar, and the RBI Monetary Policy Committee’s decision to keep rates unchanged, in line with market expectations.
The RBI kept the repo rate unchanged at 5.25% and maintained its policy stance at ‘neutral’, with the MPC unanimously voting for status quo. The central bank also projected India’s GDP growth at 6.9% for FY27 and CPI inflation at 4.6%, reinforcing expectations of stable macroeconomic conditions.