Global markets are exuding a sense of resilience despite the fog of uncertainties. U.S. 'big tech' stock prices have fallen, the value of the safe-haven yen has soared to new heights, and fears of a worldwide trade war have taken hold. But risk assets are showing the ability to bounce back.

Markets see positives in fog of uncertainty

Asian stock markets rose at the open, buoyed by a strong rally in U.S. tech shares overnight. Japan's Nikkei 225 surged 2.49%, driven by semiconductor optimism and a broader tech rally, while the Topix gained 1.32%. South Korea's Kospi rose 1.02% in early trade. In currency markets, the Indian rupee weakened to a record low of 85.84 against the U.S. dollar in the previous session, and the outlook remains weak in the short-term according to experts. Watch in for more details!

What's Moving Global Markets

The global insurance industry is at a crossroads, facing a volatile mix of high inflation, fluctuating interest rates, and geopolitical uncertainty. Yet, amid these challenges, there are significant opportunities for growth. Here’s a closer look at how the industry is adapting to these changes…Watch in for more details!

Geopolitics & Protectionism Impact Insurance Market Dynamics

Asian stock markets opened lower this morning following losses on Wall Street as the US postelection rally stalled Japan's Nikkei 225 dropped 0.5% at the open after October produced price data showing a higher than expected year on year rise. Watch in for more details!

Global Markets Wrap: Asian Stocks Open Lower; Wall Street Snaps Winning Streak

Berkshire Hathaway's cash reserves have surged to an impressive $325 billion following Warren Buffett's recent decision to cut back on his investments in Apple and Bank of America. This strategic move reflects Buffett's cautious approach amid market uncertainties and potential economic shifts. The increase in cash holdings positions Berkshire to seize future investment opportunities, underscoring the company's emphasis on maintaining financial flexibility in a volatile market landscape.

Buffet Sells Apple, Stacks Up Cash Reserve: What Does This Mean For Global Markets?

As global markets experience an unprecedented rally, accumulating an astounding $8 trillion in value over recent months, analysts are closely monitoring the potential challenges that lie ahead. This surge has been driven by a combination of factors, including robust corporate earnings, easing inflation concerns, and a resilient consumer base. However, as optimism reigns, questions arise about the sustainability of this growth amid shifting economic conditions according to a detailed report by Bloomberg. <o:p></o:p>

Economic indicators and market performance<o:p></o:p>

The rally has been particularly pronounced in major indices, with the S&amp;P 500 and NASDAQ Composite posting significant gains. The S&amp;P 500 has risen approximately 19 per cent this year alone, while the NASDAQ has surged over 30 per cent. This performance can largely be attributed to strong earnings reports from technology giants and other key sectors. Companies such as Apple and Microsoft have exceeded expectations, contributing to investor confidence.<o:p></o:p>

But the tide may be turning as analysts slice their expectations for third-quarter results. Companies in the S&amp;P 500 are expected to report a 4.7 per cent increase in quarterly earnings from a year ago, according to data compiled by Bloomberg Intelligence. That’s down from projections of 7.9 per cent on July 12, and it would represent the weakest increase in four quarters, BI data show.<o:p></o:p>

Due to these factors, market experts caution that the rally may be tested by several factors. Managing interest rates remain a significant concern, as central banks worldwide signal potential measures to combat inflation. The Federal Reserve's recent comments suggest that while inflation is easing, it is not yet under control. This could lead to increased borrowing costs, which may dampen consumer spending and corporate investment.<o:p></o:p>

“The earnings season will be more important than normal this time,” said Adam Parker, founder of Trivariate Research. “We need concrete data from corporates.”<o:p></o:p>

Additionally, geopolitical tensions i.e., the Iran-Israel dispute and supply chain disruptions continue to pose risks to market stability. The ongoing conflict in Ukraine and trade tensions with China have created more uncertainties that could impact global trade and economic growth. Analysts are urging investors to remain vigilant as these external factors could influence market dynamics in the coming months.<o:p></o:p>

Investor sentiment and future outlook<o:p></o:p>

History appears to side with the pessimists, too. Since 1945, when the S&amp;P 500 gained 20 per cent through the first nine months of the year, it posted a down October 70 per cent of the time, data compiled by Bespoke Investment Research show. The index gained 21 per cent this year through September.<o:p></o:p>

Further, reports from major companies start arriving this week, with results from Delta Air Lines Inc. due Thursday and JPMorgan Chase &amp; Co. and Wells Fargo &amp; Co. scheduled for Friday.<o:p></o:p>

Bar has been lowered<o:p></o:p>

Still, there’s reason for optimism, specifically a lowered bar for earnings projections that leaves companies more room to beat expectations.<o:p></o:p>

“Estimates got a little bit too optimistic, and now they’re pulling back to more realistic levels,” said Ellen Hazen, chief market strategist at F.L.Putnam Investment Management. “It will definitely be easier to beat earnings because estimates are lower now.”<o:p></o:p>

Further it is to be noted that the Fed’s easing cycle, which has historically been a boon for US equities. Since 1971, the S&amp;P 500 has posted an annualized return of 15 per cent during periods in which the central bank cut rates, data compiled by Bloomberg Intelligence show.<o:p></o:p>

<o:p>&nbsp;</o:p>

<o:p>&nbsp;</o:p>

As global markets experience an unprecedented rally, accumulating an astounding $8 trillion in value over recent months, analysts are closely monitoring the potential challenges that lie ahead.

As global markets experience an unprecedented rally, accumulating an astounding $8 trillion in value over recent months, analysts are closely monitoring the potential challenges that lie ahead. This surge has been driven by a combination of factors, including robust corporate earnings, easing inflation concerns, and a resilient consumer base. However, as optimism reigns, questions arise about the sustainability of this growth amid shifting economic conditions according to a detailed report by Bloomberg. Economic indicators and market performance The rally has been particularly pronounced in major indices, with the S&P 500 and NASDAQ Composite posting significant gains. The S&P 500 has risen approximately 19 per cent this year alone, while the NASDAQ has surged over 30 per cent. This performance can largely be attributed to strong earnings reports from technology giants and other key sectors. Companies such as Apple and Microsoft have exceeded expectations, contributing to investor confidence. But the tide may be turning as analysts slice their expectations for third-quarter results. Companies in the S&P 500 are expected to report a 4.7 per cent increase in quarterly earnings from a year ago, according to data compiled by Bloomberg Intelligence. That’s down from projections of 7.9 per cent on July 12, and it would represent the weakest increase in four quarters, BI data show. Due to these factors, market experts caution that the rally may be tested by several factors. Managing interest rates remain a significant concern, as central banks worldwide signal potential measures to combat inflation. The Federal Reserve's recent comments suggest that while inflation is easing, it is not yet under control. This could lead to increased borrowing costs, which may dampen consumer spending and corporate investment. “The earnings season will be more important than normal this time,” said Adam Parker, founder of Trivariate Research. “We need concrete data from corporates.” Additionally, geopolitical tensions i.e., the Iran-Israel dispute and supply chain disruptions continue to pose risks to market stability. The ongoing conflict in Ukraine and trade tensions with China have created more uncertainties that could impact global trade and economic growth. Analysts are urging investors to remain vigilant as these external factors could influence market dynamics in the coming months. Investor sentiment and future outlook History appears to side with the pessimists, too. Since 1945, when the S&P 500 gained 20 per cent through the first nine months of the year, it posted a down October 70 per cent of the time, data compiled by Bespoke Investment Research show. The index gained 21 per cent this year through September. Further, reports from major companies start arriving this week, with results from Delta Air Lines Inc. due Thursday and JPMorgan Chase & Co. and Wells Fargo & Co. scheduled for Friday. Bar has been lowered Still, there’s reason for optimism, specifically a lowered bar for earnings projections that leaves companies more room to beat expectations. “Estimates got a little bit too optimistic, and now they’re pulling back to more realistic levels,” said Ellen Hazen, chief market strategist at F.L.Putnam Investment Management. “It will definitely be easier to beat earnings because estimates are lower now.” Further it is to be noted that the Fed’s easing cycle, which has historically been a boon for US equities. Since 1971, the S&P 500 has posted an annualized return of 15 per cent during periods in which the central bank cut rates, data compiled by Bloomberg Intelligence show.

Global markets surge as $8 trillion rally faces key tests

Chief economists have expressed cautious optimism over the global economy, particularly highlighting India's robust performance that put South Asia at the top position globally, according to the latest survey by the World Economic Forum.

A survey released last week by the World Economic Forum makes a series of noteworthy predictions and reveals easing inflation and strong global commerce as key drivers of the optimism for recovery; however, it also points out accelerating debt levels that challenge advanced and developing economies alike.

Brief history of World Economic Forum<o:p></o:p>

The World Economic Forum (WEF) is an international non-governmental organization, think tank and lobbying organisation based in Cologny, Canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer Klaus Schwab.

The foundation, which is mostly funded by its 1,000 member companies, typically global enterprises with more than five billion US dollars in turnover, as well as public subsidies, states that its own mission is "improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas".

The Forum claims that a globalized world is best managed by a self-selected coalition of multinational corporations, governments, and civil society organizations (CSOs), which it expresses through initiatives like the "Great Reset" and the "Global Redesign". It states that it views periods of global instability such as the financial crisis of 2007–2008 and the COVID-19 pandemic, as windows of opportunity to intensify its programmatic efforts.

WEF Outlook<o:p></o:p>

According to a report detailed by the Press Trust of India, The WEF Chief Economists Outlook has revealed that the spectrum of debt and fiscal stress is only rising, which is making economists worried about the cost of servicing debt that will yield the starkest constraint on key investment areas such as infrastructure, education, and healthcare. In particular, 39 per cent of economists polled from developing nations expected a rise in defaults in the next year.

Regionally, almost 90 per cent of economists expect moderate to strong growth in the US over the next two years through 2025 while still confident that it will have a "soft landing" post-tight monetary policy. Europe is expected to be experiencing weak growth and China faces similar problems with nearly 40 per cent expecting weak or very weak growth over the next two years.

South Asia is very different. Over 70 per cent of economists are positive regarding the prospects for strong growth in 2024 and 2025, mainly due to India's performance. The International Monetary Fund recently adjusted India's GDP growth forecast from 6.8 per cent to 7 per cent, showing again the vibrancy of the region.

Further, according to Saadia Zahidi, WEF's managing director, the global economy enters 2024 with new signs of stabilization but fiscal challenges remain. The role of coordinated policy efforts in facilitating resilient recovery is perceived here to be quite important. The survey suggests limited fiscal space for facing future crises; developing economies are vulnerable to dealing with long-term challenges such as climate change and demographic shifts.

<o:p>&nbsp;</o:p>

Chief economists have expressed cautious optimism over the global economy, particularly highlighting India's robust performance that put South Asia at the top position globally, according to the latest survey by the World Economic Forum.

Chief economists have expressed cautious optimism over the global economy, particularly highlighting India's robust performance that put South Asia at the top position globally, according to the latest survey by the World Economic Forum. A survey released last week by the World Economic Forum makes a series of noteworthy predictions and reveals easing inflation and strong global commerce as key drivers of the optimism for recovery; however, it also points out accelerating debt levels that challenge advanced and developing economies alike. Brief history of World Economic Forum The World Economic Forum (WEF) is an international non-governmental organization, think tank and lobbying organisation based in Cologny, Canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer Klaus Schwab. The foundation, which is mostly funded by its 1,000 member companies, typically global enterprises with more than five billion US dollars in turnover, as well as public subsidies, states that its own mission is "improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas". The Forum claims that a globalized world is best managed by a self-selected coalition of multinational corporations, governments, and civil society organizations (CSOs), which it expresses through initiatives like the "Great Reset" and the "Global Redesign". It states that it views periods of global instability such as the financial crisis of 2007–2008 and the COVID-19 pandemic, as windows of opportunity to intensify its programmatic efforts. WEF Outlook According to a report detailed by the Press Trust of India, The WEF Chief Economists Outlook has revealed that the spectrum of debt and fiscal stress is only rising, which is making economists worried about the cost of servicing debt that will yield the starkest constraint on key investment areas such as infrastructure, education, and healthcare. In particular, 39 per cent of economists polled from developing nations expected a rise in defaults in the next year. Regionally, almost 90 per cent of economists expect moderate to strong growth in the US over the next two years through 2025 while still confident that it will have a "soft landing" post-tight monetary policy. Europe is expected to be experiencing weak growth and China faces similar problems with nearly 40 per cent expecting weak or very weak growth over the next two years. South Asia is very different. Over 70 per cent of economists are positive regarding the prospects for strong growth in 2024 and 2025, mainly due to India's performance. The International Monetary Fund recently adjusted India's GDP growth forecast from 6.8 per cent to 7 per cent, showing again the vibrancy of the region. Further, according to Saadia Zahidi, WEF's managing director, the global economy enters 2024 with new signs of stabilization but fiscal challenges remain. The role of coordinated policy efforts in facilitating resilient recovery is perceived here to be quite important. The survey suggests limited fiscal space for facing future crises; developing economies are vulnerable to dealing with long-term challenges such as climate change and demographic shifts.

Leading economists bullish on India, still cautious optimism prevails for global recovery: WEF survey

On Monday, Asian stocks hit a three-week low, with Japan in the forefront of the declines. The reason: US Jobs data fuelled worries that the fed may have left it too late to cut interest rates.

Japan leads the declines in Asian stocks

Big investors have positioned for this summer's rout in stocks to bleed into autumn on concerns that a broader wave of selling will follow the turmoil originated by US recession concerns and the Bank of Japan wrong-footing currency speculators.

The sudden turning round of crowded equity and foreign exchange trades driving vicious feedback loops of price drops, volatility, and hedge fund selling has eased, with world stocks nearly 2 per cent higher so far this week.

Now, asset managers presiding over hundreds of billions of dollars in investments say they are more likely to continue selling stocks than buying back in with the signs of weakness in the US jobs market and global consumer trends trimming the bar for market aftershocks.

What is taking the place of the common 'buy-the-dip' mentality, in which investors typically respond to selloffs by making recovery bets, is fear.

"It's not simply now a large financial market accident, which maybe we could describe last week as. It's broader than that," said Mahmood Pradhan, a former IMF deputy director and head of global macro at the research arm of Amundi, Europe's largest fund manager.

He expects investors, who, according to Bank of America, have already cut equity positions and shifted increasingly into cash, to stay cautious.

One of them is Michael Kelly of PineBridge Investments, who runs multi-asset and has about $170 billion of client funds, and has cut back the stock market positions in his funds and may do so further.

"It's going to be very, very volatile in the next two months," he said.

A first US rate cut, expected next month, might be too late to rescue the economy, he added.

The global growth expectations of investors hit an eight-month low.

Big investors have positioned for this summer's rout in stocks to bleed into autumn on concerns that a broader wave of selling will follow the turmoil originated by US recession concerns and the Bank of Japan wrong-footing currency speculators.

Big investors have positioned for this summer's rout in stocks to bleed into autumn on concerns that a broader wave of selling will follow the turmoil originated by US recession concerns and the Bank of Japan wrong-footing currency speculators. The sudden turning round of crowded equity and foreign exchange trades driving vicious feedback loops of price drops, volatility, and hedge fund selling has eased, with world stocks nearly 2 per cent higher so far this week. Now, asset managers presiding over hundreds of billions of dollars in investments say they are more likely to continue selling stocks than buying back in with the signs of weakness in the US jobs market and global consumer trends trimming the bar for market aftershocks. What is taking the place of the common 'buy-the-dip' mentality, in which investors typically respond to selloffs by making recovery bets, is fear. "It's not simply now a large financial market accident, which maybe we could describe last week as. It's broader than that," said Mahmood Pradhan, a former IMF deputy director and head of global macro at the research arm of Amundi, Europe's largest fund manager. He expects investors, who, according to Bank of America, have already cut equity positions and shifted increasingly into cash, to stay cautious. One of them is Michael Kelly of PineBridge Investments, who runs multi-asset and has about $170 billion of client funds, and has cut back the stock market positions in his funds and may do so further. "It's going to be very, very volatile in the next two months," he said. A first US rate cut, expected next month, might be too late to rescue the economy, he added. The global growth expectations of investors hit an eight-month low.

Autumn market jitters intensify as investors brace for prolonged selloff

The sharp slowdown in the US job market, which sent global stock markets into turbulent days, has triggered speculation that the Federal Reserve might cut interest rates before its next scheduled meeting in September.

An interest rate futures contract expiring later this month, reflecting expectations for Fed policy, surged to its two-month high earlier this week, showing bets that rates might be lowered by the end of August. However, the odds of an emergency rate cut are still low.

The mandate of the Fed is about employment and price stability, according to Chicago Fed President Austan Goolsbee. 'The law doesn't say anything about the stock market. It's about employment and price stability,' Goolsbee said earlier this week, outlining what the Fed is concerned about.

Many analysts now believe that the September meeting will feature a half-percentage-point rate cut, but few see any reason the Fed would act sooner. Nationally, chief economist Kathy Bostjancic of Nationwide stressed that none of the data thus far would be justifiable cause for an emergency rate cut and, as such, may give rise to more market panic. 
Then, ex-New York Fed President Bill Dudley, previously one of the most vigorous defenders of lower interest rates, said an intermeeting cut was "very unlikely" this week.

It's an event that Fed Chair Jerome Powell will probably provide more colour on at the Kansas City Fed's annual economic symposium later this month in Jackson Hole, Wyoming.

For now, Powell is expected to stay in tune with what he set last Wednesday that a rate cut could be in store for the September meeting pending data.

The decision of the Fed is most likely to depend on upcoming jobs data, inflation, consumer spending, and data for economic growth.

Precedents set in the past have shown that the Fed has only cut interest rates between meetings when there has been a major market disruption that extended beyond the stock market.

In these instances, bond market disruptions directly threatened the larger economy, a situation that is not yet apparent.

Among past in-between meeting rate cuts are those the Fed did in response to the Russian financial crisis and the implosion of hedge fund Long-Term Capital Management in 1998, where it lowered the policy rate by 25 basis points.

Then, in 2001, it came up with two surprise half-point cuts in reaction to the crash of technology stocks, once more in the wake of the September 11 attacks.

The most important intermeeting cuts were those during the global financial crisis of 2008, totalling 125 basis points off the target, and in March 2020, when the Fed slashed rates by 150 basis points as a reaction to COVID-19.

The sharp slowdown in the US job market, which sent global stock markets into turbulent days, has triggered speculation that the Federal Reserve might cut interest rates before its next scheduled meeting in September.

The sharp slowdown in the US job market, which sent global stock markets into turbulent days, has triggered speculation that the Federal Reserve might cut interest rates before its next scheduled meeting in September. An interest rate futures contract expiring later this month, reflecting expectations for Fed policy, surged to its two-month high earlier this week, showing bets that rates might be lowered by the end of August. However, the odds of an emergency rate cut are still low. The mandate of the Fed is about employment and price stability, according to Chicago Fed President Austan Goolsbee. 'The law doesn't say anything about the stock market. It's about employment and price stability,' Goolsbee said earlier this week, outlining what the Fed is concerned about. Many analysts now believe that the September meeting will feature a half-percentage-point rate cut, but few see any reason the Fed would act sooner. Nationally, chief economist Kathy Bostjancic of Nationwide stressed that none of the data thus far would be justifiable cause for an emergency rate cut and, as such, may give rise to more market panic. Then, ex-New York Fed President Bill Dudley, previously one of the most vigorous defenders of lower interest rates, said an intermeeting cut was "very unlikely" this week. It's an event that Fed Chair Jerome Powell will probably provide more colour on at the Kansas City Fed's annual economic symposium later this month in Jackson Hole, Wyoming. For now, Powell is expected to stay in tune with what he set last Wednesday that a rate cut could be in store for the September meeting pending data. The decision of the Fed is most likely to depend on upcoming jobs data, inflation, consumer spending, and data for economic growth. Precedents set in the past have shown that the Fed has only cut interest rates between meetings when there has been a major market disruption that extended beyond the stock market. In these instances, bond market disruptions directly threatened the larger economy, a situation that is not yet apparent. Among past in-between meeting rate cuts are those the Fed did in response to the Russian financial crisis and the implosion of hedge fund Long-Term Capital Management in 1998, where it lowered the policy rate by 25 basis points. Then, in 2001, it came up with two surprise half-point cuts in reaction to the crash of technology stocks, once more in the wake of the September 11 attacks. The most important intermeeting cuts were those during the global financial crisis of 2008, totalling 125 basis points off the target, and in March 2020, when the Fed slashed rates by 150 basis points as a reaction to COVID-19.

Global market turmoil sparks speculation on early Fed rate cut

Global stocks gained ground after a deep selloff across markets from Tokyo to London to New York on Monday.&nbsp;

Japanese stocks powered higher, leading gains in Asia. They are covering part of the ground lost in Monday's worldwide plunge.&nbsp;

A series of small dips and Monday's wild selloff in global stocks erased $6.4 trillion of investor wealth in three weeks. To put that loss into context, the investor wealth wipeout is double the annual GDP of India.&nbsp;

Investors may finally be able to take a breather after a wild day, but markets are likely to face more volatility. At one point on Monday, the wall street's "fear gauge" hit a new high in data going back to 1990.&nbsp;

Japan's Nikkei rose over 8 per cent in early trading following a 12.4 per cent decline on Monday. The previous session also marked the worst day for Japanese stocks since 1987's Black Monday.&nbsp;

Japan's benchmarks rose by about 11 per cent following a more than 12 per cent plunge on Monday.&nbsp;

South Korea's index surged over 3 per cent. Stocks in China's Mainland, Hong Kong and Australia were mostly flat. Overnight, the S&amp;P 500 pared some of its losses towards the end of the session on Monday. However, the index still closed 3 per cent lower to mark its worst decline in over two years. The tech-heavy Nasdaq had the worst opening since the financial crisis in 2008.&nbsp;

US Big tech firms, widely known as the 'magnificent seven', lost nearly $1 trillion. However, US Stock futures point to gains when trading starts later Tuesday.&nbsp;

Speculation of an impending US Recession weighed on global stocks. The repricing was so severe that the swap market had predicted a 60 per cent probability of an emergency rate cut by the fed in the coming week. However, those chances faded overnight.&nbsp;

In commodities, following a three-day dip, oil prices rose from a seven-month low as optimism in stock futures suggested a recovery.&nbsp;

The shutdown of Libya's largest field redirected global attention to West Asia and boosted crude.&nbsp;

Global stocks gained ground after a deep selloff across markets from Tokyo to London to New York on Monday. Japanese stocks powered higher, leading gains in Asia.

Global stocks gained ground after a deep selloff across markets from Tokyo to London to New York on Monday. Japanese stocks powered higher, leading gains in Asia. They are covering part of the ground lost in Monday's worldwide plunge. A series of small dips and Monday's wild selloff in global stocks erased $6.4 trillion of investor wealth in three weeks. To put that loss into context, the investor wealth wipeout is double the annual GDP of India. Investors may finally be able to take a breather after a wild day, but markets are likely to face more volatility. At one point on Monday, the wall street's "fear gauge" hit a new high in data going back to 1990. Japan's Nikkei rose over 8 per cent in early trading following a 12.4 per cent decline on Monday. The previous session also marked the worst day for Japanese stocks since 1987's Black Monday. Japan's benchmarks rose by about 11 per cent following a more than 12 per cent plunge on Monday. South Korea's index surged over 3 per cent. Stocks in China's Mainland, Hong Kong and Australia were mostly flat. Overnight, the S&P 500 pared some of its losses towards the end of the session on Monday. However, the index still closed 3 per cent lower to mark its worst decline in over two years. The tech-heavy Nasdaq had the worst opening since the financial crisis in 2008. US Big tech firms, widely known as the 'magnificent seven', lost nearly $1 trillion. However, US Stock futures point to gains when trading starts later Tuesday. Speculation of an impending US Recession weighed on global stocks. The repricing was so severe that the swap market had predicted a 60 per cent probability of an emergency rate cut by the fed in the coming week. However, those chances faded overnight. In commodities, following a three-day dip, oil prices rose from a seven-month low as optimism in stock futures suggested a recovery. The shutdown of Libya's largest field redirected global attention to West Asia and boosted crude.

Global markets rally at open after sliding on Monday

Stock markets are tumbling globally with Japanese shares as one point exceeding their 1987 Black Monday loss. While European Shares near six-month lows. Our next report decodes how the fears of a US recession sent investors fleeing from risk while deciding that rate cuts would be needed to rescue growth. Japan's Nikkei 225 share index plunged as much as 10% on Monday, driven by heavy selling amid concerns that the U.S. economy may be in worse shape than previously expected. Watch in for more details!

US unemployment data triggers 'Sahm rule recession' warning

Global markets witnessed a lot of turbulence heading to this year. Geopolitical tensions and inflation concerns were at their peak. Cut to 6 months later, and the global markets have witnessed record highs. Asian stocks have breached&nbsp;multiple peaks, with India &amp; Pakistan's stock markets leading the rally. US stocks are also at record highs. But what's driving this rally?

The surge in tech stocks has bolstered the markets in 2024. While investors are still navigating interest rate dynamics, companies like Nvidia have soared exponentially, rising to over 150 per cent in the year. Reuters data shows that the MSCI's 47-country world stocks index has clocked up 11 per cent since January. Meanwhile, the top tech firms have surged 30 per cent. The magnificent seven alone has surged $8.3 trillion in the last 18 months. This contrasting jump explains the&nbsp;market's triumph.

This comes at a time when major economies have witnessed or are about to witness 'unexpected' elections. Election uncertainties have certainly caused market volatility, which has benefitted short-sellers as well. In Nvidia's recent $430 billion 3-day slump, short-sellers reportedly made $5 billion.

Gold and cryptocurrency shine

Cocoa prices surged to record highs of $11,000 in the initial months of 2024. Since then, the prices have witnessed a downward trend,&nbsp;declining to a 2-year low.

But what shines is GOLD! The yellow metal has hit record highs in 2024. The demand for safe-haven assets has overall surged in 2024, with investors looking for safer bets amid volatility.&nbsp;

Cryptocurrencies also made a comeback, with the approval of Exchange-Traded Funds (ETFs). The prices broke multiple record highs as it cruised through the $70,000 mark.

Global markets witnessed a lot of turbulence heading to this year. Geopolitical tensions and inflation concerns were at their peak. Cut to 6 months later, and the global markets have witnessed record highs.

Global markets witnessed a lot of turbulence heading to this year. Geopolitical tensions and inflation concerns were at their peak. Cut to 6 months later, and the global markets have witnessed record highs. Asian stocks have breached multiple peaks, with India & Pakistan's stock markets leading the rally. US stocks are also at record highs. But what's driving this rally? The surge in tech stocks has bolstered the markets in 2024. While investors are still navigating interest rate dynamics, companies like Nvidia have soared exponentially, rising to over 150 per cent in the year. Reuters data shows that the MSCI's 47-country world stocks index has clocked up 11 per cent since January. Meanwhile, the top tech firms have surged 30 per cent. The magnificent seven alone has surged $8.3 trillion in the last 18 months. This contrasting jump explains the market's triumph. This comes at a time when major economies have witnessed or are about to witness 'unexpected' elections. Election uncertainties have certainly caused market volatility, which has benefitted short-sellers as well. In Nvidia's recent $430 billion 3-day slump, short-sellers reportedly made $5 billion. Gold and cryptocurrency shine Cocoa prices surged to record highs of $11,000 in the initial months of 2024. Since then, the prices have witnessed a downward trend, declining to a 2-year low. But what shines is GOLD! The yellow metal has hit record highs in 2024. The demand for safe-haven assets has overall surged in 2024, with investors looking for safer bets amid volatility. Cryptocurrencies also made a comeback, with the approval of Exchange-Traded Funds (ETFs). The prices broke multiple record highs as it cruised through the $70,000 mark.

Global markets roundup: Tech rally leads global markets in 2024

Now, we turn our attention to a silent bull run in the Pakistani stock market. There appears to be more legs to the bull run in Pakistani stocks, which could be an indication of better economic conditions. This bolsters the outlook for Asia's best-performing market this year, beating Indian stocks at all-time highs. Take a look at this report for more...

Pakistan's stock rally leads in Asia with more gains seen

We look at how markets opened this morning after a selloff on Wall Street overnight. Asian stocks edged higher to defy a mixed day on Wall Street as speculation gained that the tech sector rally may be running out of steam. Watch in for more details!

Asian stocks edged higher to defy the Wall Street selloff

Now, we turn our attention to Japan's warning of intervention to support the weakening yen at the start of the week. As the week begins with inflation data that could influence bets on the future of global interest rates, an index of Asian currencies fell for a third consecutive day. Despite Japan's top currency official increasing his rhetoric of intervention, the yen remained stable.

Investors eye Asian currencies as Japan warns on Yen

This week, global markets are poised for several key developments across major economies, influencing investor sentiment and economic policy decisions.

The week ahead: Risks & opportunities

Investors can expect another wild ride this week. Political changes and important economic data take centre stage. Let’s look at some key cues to watch for next week

US inflation numbers

The release of the U.S. inflation numbers next week will be crucial for an understanding of the state of the economy and possible Fed moves around rate cuts. Fed remarks and inflation statistics could cause market anxiety. As investors react, expect stock prices and bond yields to fluctuate as well.

Performance of the S&amp;P 500

Despite the S&amp;P 500's tremendous gains this year, worries are growing over how concentrated those gains are in growth and tech firms. Relatively high price-to-earnings ratios are unsettling some analysts. Corporate earnings season continues, especially for those navigating economic uncertainties. The earnings report will be closely examined.&nbsp;

U.S. election heats up

Political uncertainty might amplify volatility in markets ahead of the presidential debate and election, particularly in industries like healthcare and energy.

Indian stock market on the rise

Indian stocks continue to defy global slowdown with stock indices touching new highs. After losing $386 billion on the election day, the markets have not only recovered, but touched new highs last week. Prime Minister Modi's oath-taking ceremony is a sign of political stability, but investors remain focused on the country's upcoming budget and monetary policy decisions.

Investors can expect another wild ride this week. Political changes and important economic data take centre stage. Let’s look at some key cues to watch for next week US inflation numbers The release of the U.

Investors can expect another wild ride this week. Political changes and important economic data take centre stage. Let’s look at some key cues to watch for next week US inflation numbers The release of the U.S. inflation numbers next week will be crucial for an understanding of the state of the economy and possible Fed moves around rate cuts. Fed remarks and inflation statistics could cause market anxiety. As investors react, expect stock prices and bond yields to fluctuate as well. Performance of the S&P 500 Despite the S&P 500's tremendous gains this year, worries are growing over how concentrated those gains are in growth and tech firms. Relatively high price-to-earnings ratios are unsettling some analysts. Corporate earnings season continues, especially for those navigating economic uncertainties. The earnings report will be closely examined. U.S. election heats up Political uncertainty might amplify volatility in markets ahead of the presidential debate and election, particularly in industries like healthcare and energy. Indian stock market on the rise Indian stocks continue to defy global slowdown with stock indices touching new highs. After losing $386 billion on the election day, the markets have not only recovered, but touched new highs last week. Prime Minister Modi's oath-taking ceremony is a sign of political stability, but investors remain focused on the country's upcoming budget and monetary policy decisions.

Global markets: Cues to watch

While the upcoming elections dominate headlines, a quieter revolution is brewing in the financial markets. India's inclusion in key global bond indices, starting June 2024, has the potential to be a game-changer, not just for the nation's financial health but also for its political stability.

This long-awaited move signals a vote of confidence in India's economic stability. The phased inclusion, with Indian government bonds gradually reaching a 10 per cent&nbsp;weight in the JP Morgan index by March 2025, is expected to unlock a significant inflow of foreign capital. Experts predict an annual wave of $30-40 billion over the next five years, fundamentally altering the dynamics of the global bond market.

The benefits for India are multifaceted. Increased foreign investment will free up domestic capital for crucial areas like infrastructure development and climate change initiatives. Lower borrowing costs for the government and Indian firms will further bolster economic activity. Additionally, a more diversified investor base can inject dynamism and stability into the Indian capital market.

The long-term benefits of a robust bond market could solidify India's position as an attractive investment destination. This, in turn, could translate into sustained economic growth. A growing and stable economy often translates to a more stable political landscape.

While the outlook is undeniably positive, navigating this new reality requires a cautious approach. India's debt market could become more susceptible to global economic fluctuations. To mitigate this risk, maintaining sound macroeconomic policies and a robust financial sector is crucial. Additionally, India needs to address domestic challenges like project preparation and improving bankable infrastructure projects to maximise the benefits of this inclusion.

While the upcoming elections dominate headlines, a quieter revolution is brewing in the financial markets. India's inclusion in key global bond indices, starting June 2024, has the potential to be a game-changer, not just for the nation's financial health but also for its political stability.

While the upcoming elections dominate headlines, a quieter revolution is brewing in the financial markets. India's inclusion in key global bond indices, starting June 2024, has the potential to be a game-changer, not just for the nation's financial health but also for its political stability. This long-awaited move signals a vote of confidence in India's economic stability. The phased inclusion, with Indian government bonds gradually reaching a 10 per cent weight in the JP Morgan index by March 2025, is expected to unlock a significant inflow of foreign capital. Experts predict an annual wave of $30-40 billion over the next five years, fundamentally altering the dynamics of the global bond market. The benefits for India are multifaceted. Increased foreign investment will free up domestic capital for crucial areas like infrastructure development and climate change initiatives. Lower borrowing costs for the government and Indian firms will further bolster economic activity. Additionally, a more diversified investor base can inject dynamism and stability into the Indian capital market. The long-term benefits of a robust bond market could solidify India's position as an attractive investment destination. This, in turn, could translate into sustained economic growth. A growing and stable economy often translates to a more stable political landscape. While the outlook is undeniably positive, navigating this new reality requires a cautious approach. India's debt market could become more susceptible to global economic fluctuations. To mitigate this risk, maintaining sound macroeconomic policies and a robust financial sector is crucial. Additionally, India needs to address domestic challenges like project preparation and improving bankable infrastructure projects to maximise the benefits of this inclusion.

Indian bonds to reshape the global bonds market?

In response to ongoing market fluctuations, the Indian government under Prime Minister Narendra Modi has announced a slight increase in the windfall tax on domestically produced crude oil and diesel. <o:p></o:p>

Effective from February 16, 2024, the special additional excise duty (SAED) on crude oil rises to 3,300 rupees (approximately $40) per tonne, while diesel exports will now incur 1.50 rupees per litre duty.<o:p></o:p>

The recent adjustments mark a marginal uptick from the previous rates, reflecting the government's strategy to capitalise on energy sector profits amid global uncertainties. <o:p></o:p>

While SAED on petrol and aviation turbine fuel remains untouched, the reintroduction of duty on diesel exports underscores efforts to bolster domestic reserves amidst the Red Sea crisis.<o:p></o:p>

The fortnightly review mechanism, initiated in July 2022, ensures that tax rates align with prevailing oil prices, facilitating timely fiscal adjustments.<o:p></o:p>

The decision comes amidst a backdrop of fluctuating global oil prices. <o:p></o:p>

With Brent crude hovering around $81.97 per barrel and the Indian crude oil basket at $83.08 a barrel as of February 14, market volatility poses challenges and opportunities for oil-dependent economies like India.<o:p></o:p>

Forecasts from the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC) paint divergent pictures of the oil market. <o:p></o:p>

While OPEC anticipates robust demand growth in 2024 and 2025, the IEA's revised projections signal a slowdown in global oil demand momentum.<o:p></o:p>

In response to ongoing market fluctuations, the Indian government under Prime Minister Narendra Modi has announced a slight increase in the windfall tax on domestically produced crude oil and diesel.

In response to ongoing market fluctuations, the Indian government under Prime Minister Narendra Modi has announced a slight increase in the windfall tax on domestically produced crude oil and diesel. Effective from February 16, 2024, the special additional excise duty (SAED) on crude oil rises to 3,300 rupees (approximately $40) per tonne, while diesel exports will now incur 1.50 rupees per litre duty. The recent adjustments mark a marginal uptick from the previous rates, reflecting the government's strategy to capitalise on energy sector profits amid global uncertainties. While SAED on petrol and aviation turbine fuel remains untouched, the reintroduction of duty on diesel exports underscores efforts to bolster domestic reserves amidst the Red Sea crisis. The fortnightly review mechanism, initiated in July 2022, ensures that tax rates align with prevailing oil prices, facilitating timely fiscal adjustments. The decision comes amidst a backdrop of fluctuating global oil prices. With Brent crude hovering around $81.97 per barrel and the Indian crude oil basket at $83.08 a barrel as of February 14, market volatility poses challenges and opportunities for oil-dependent economies like India. Forecasts from the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC) paint divergent pictures of the oil market. While OPEC anticipates robust demand growth in 2024 and 2025, the IEA's revised projections signal a slowdown in global oil demand momentum.

India raises windfall tax on crude oil amid global market volatility

A look at how Global markets performed in January. Oil rose over 6% with Brent crude hitting nearly $83 a barrel even as Red Sea tensions escalate. Gold closed out the month slightly lower but still held above the $2,000 mark. Watch to know more!

Global Economy Outlook | Market moves in January

Founder-CEO of Binance, the world's largest Cryptocurrency exchange Changpeng zhao, steps down from his role after pleading guilty to breaking US anti-money laundering laws. Zhao agrees to pay $4.3 billion as a settlement deal in a Seattle court. Including a personal payout of $50 million, to resolve the matter.

Gravitas: How 2022 shocked, rocked and rolled global markets

In the Asia-Pacific region, the majority of markets saw declines ahead of a significant monetary policy decision by the Bank of Japan. Investors were also evaluating manufacturing data from China. The Bank of Japan is set to conclude its two-day policy meeting later today, and market participants are closely monitoring for any indications of the central bank raising its inflation forecasts. Further adjustments to its bond yield control may also be discussed.

Japan's Nikkei 225 dipped in anticipation of the central bank's inflation forecasts. On the other hand, South Korea's KOSPI continued its upward momentum for a second consecutive session.

Hong Kong's Hang Seng Index started the day in negative territory, mirroring the performance of mainland Chinese stocks.

Meanwhile, in the United States, stocks rallied on Monday, with the S&amp;P 500 moving out of correction territory. This sets the stage for a significant week that includes the Federal Reserve rate decision, employment report, and Apple's earnings.

The Dow Jones Industrial Average gained over 1 per cent, marking its best day since June 2. The S&amp;P 500 also recorded an increase of over 1 per cent, representing its most robust performance since late August.

Turning to the commodities market, oil prices rose during early Asian trading, amid global central bank meetings and ongoing high tensions in the Middle East. Notably, oil had fallen more than 3 per cent in the previous session due to escalated conflicts involving Israel's attacks on Gaza. However, concerns eased regarding disruptions in the region's oil supply caused by the Israel-Hamas war.

In the realm of precious metals, gold prices remained near the psychologically significant $2,000 level, supported by safe-haven demand driven by the Middle East conflict. Market participants are keenly watching this week's U.S. Federal Reserve policy meeting. It's worth noting that spot gold prices reached $2,009 per ounce on Friday, surpassing the $2,000 level for the first time since mid-May. Gold has been a standout performer this month, surging over 8 per cent since the onset of the war in Gaza on October 7th.

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In the Asia-Pacific region, the majority of markets saw declines ahead of a significant monetary policy decision by the Bank of Japan. Investors were also evaluating manufacturing data from China.

In the Asia-Pacific region, the majority of markets saw declines ahead of a significant monetary policy decision by the Bank of Japan. Investors were also evaluating manufacturing data from China. The Bank of Japan is set to conclude its two-day policy meeting later today, and market participants are closely monitoring for any indications of the central bank raising its inflation forecasts. Further adjustments to its bond yield control may also be discussed. Japan's Nikkei 225 dipped in anticipation of the central bank's inflation forecasts. On the other hand, South Korea's KOSPI continued its upward momentum for a second consecutive session. Hong Kong's Hang Seng Index started the day in negative territory, mirroring the performance of mainland Chinese stocks. Meanwhile, in the United States, stocks rallied on Monday, with the S&P 500 moving out of correction territory. This sets the stage for a significant week that includes the Federal Reserve rate decision, employment report, and Apple's earnings. The Dow Jones Industrial Average gained over 1 per cent, marking its best day since June 2. The S&P 500 also recorded an increase of over 1 per cent, representing its most robust performance since late August. Turning to the commodities market, oil prices rose during early Asian trading, amid global central bank meetings and ongoing high tensions in the Middle East. Notably, oil had fallen more than 3 per cent in the previous session due to escalated conflicts involving Israel's attacks on Gaza. However, concerns eased regarding disruptions in the region's oil supply caused by the Israel-Hamas war. In the realm of precious metals, gold prices remained near the psychologically significant $2,000 level, supported by safe-haven demand driven by the Middle East conflict. Market participants are keenly watching this week's U.S. Federal Reserve policy meeting. It's worth noting that spot gold prices reached $2,009 per ounce on Friday, surpassing the $2,000 level for the first time since mid-May. Gold has been a standout performer this month, surging over 8 per cent since the onset of the war in Gaza on October 7th. WATCH WION LIVE HERE

Global Markets Roundup | S&P 500 rebounds after correction

Asia-Pacific markets had a mixed start to the week as they brace for a slew of key economic data releases in the region. The week's highlights include monetary policy decisions from Japan and Malaysia, South Korea's inflation data, and Taiwan and Hong Kong's gross domestic growth figures.

Japan's Nikkei 225 began the week on a down note, sliding over 1 per cent at the open, coinciding with the commencement of the Bank of Japan's two-day monetary policy meeting. On the other hand, South Korean markets opened on a positive note, thanks to a rally in small-cap stocks.

Hong Kong's Hang Seng index experienced a marginal decline, while mainland Chinese stocks traded close to the flatline.

In the United States, the previous trading session saw mixed results in the major stock indexes. The S&amp;P 500 entered correction territory as renewed selling pressure emerged on Wall Street due to concerns about a potential recession. The Dow Jones Industrial Average saw a decline, while the Nasdaq Composite held its ground, with Amazon outperforming expectations for revenue and earnings in the third quarter.

Oil prices dipped by over 1 per cent&nbsp;as investors exercised caution ahead of the Federal Reserve's policy meeting and China's upcoming manufacturing data. These declines offset the support from geopolitical tensions in the Middle East.

Investors are closely monitoring the Federal Reserve's monetary policy meeting, U.S. employment data, and tech giant Apple Inc.'s earnings for any signs of an economic slowdown that could affect fuel demand, especially in the world's leading oil-consuming nation.

Gold prices edged higher, buoyed by sustained safe-haven demand driven by tensions in the Middle East. The precious metal has gained approximately 8 per cent, equivalent to over $140, since the onset of the conflict in Israel on October 7th.

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Asia-Pacific markets had a mixed start to the week as they brace for a slew of key economic data releases in the region. The week's highlights include monetary policy decisions from Japan and Malaysia, South Korea's inflation data, and Taiwan and Hong Kong's gross domestic growth figures.

Asia-Pacific markets had a mixed start to the week as they brace for a slew of key economic data releases in the region. The week's highlights include monetary policy decisions from Japan and Malaysia, South Korea's inflation data, and Taiwan and Hong Kong's gross domestic growth figures. Japan's Nikkei 225 began the week on a down note, sliding over 1 per cent at the open, coinciding with the commencement of the Bank of Japan's two-day monetary policy meeting. On the other hand, South Korean markets opened on a positive note, thanks to a rally in small-cap stocks. Hong Kong's Hang Seng index experienced a marginal decline, while mainland Chinese stocks traded close to the flatline. In the United States, the previous trading session saw mixed results in the major stock indexes. The S&P 500 entered correction territory as renewed selling pressure emerged on Wall Street due to concerns about a potential recession. The Dow Jones Industrial Average saw a decline, while the Nasdaq Composite held its ground, with Amazon outperforming expectations for revenue and earnings in the third quarter. Oil prices dipped by over 1 per cent as investors exercised caution ahead of the Federal Reserve's policy meeting and China's upcoming manufacturing data. These declines offset the support from geopolitical tensions in the Middle East. Investors are closely monitoring the Federal Reserve's monetary policy meeting, U.S. employment data, and tech giant Apple Inc.'s earnings for any signs of an economic slowdown that could affect fuel demand, especially in the world's leading oil-consuming nation. Gold prices edged higher, buoyed by sustained safe-haven demand driven by tensions in the Middle East. The precious metal has gained approximately 8 per cent, equivalent to over $140, since the onset of the conflict in Israel on October 7th. WATCH WION LIVE HERE

Global markets roundup | Gold shines for third straight week

With the backdrop of an unexpected attack by Hamas on Israel, global financial markets are facing heightened uncertainty, with concerns over inflation and geopolitical risk taking centre stage. As markets react to the unfolding crisis, analysts weigh in on potential impacts and outcomes, Bloomberg reported.

The ensuing conflict, coupled with a surge in crude oil prices, has sent shockwaves through markets already grappling with rising interest rates and inflation concerns.

As tensions escalated, safe-haven currencies like the yen and the dollar strengthened in the early days of the trading week. Norway's krone also saw gains, benefiting from the surge in oil prices. Meanwhile, US stock futures dipped 0.7 per cent, and Asian markets displayed mixed performance. Notably, Middle Eastern equity markets experienced a significant decline, with Israel's benchmark TA-35 stock index witnessing its largest loss in over three years.

Bond traders now face a critical decision: whether to seek refuge in the safety of the dollar, forsaking higher-yield debt, or to brace for the potential impact of increased inflation. While Treasury futures gained ground at the start of the week, cash Treasuries remained closed due to a US holiday.

Bloomberg quoted Ed Yardeni, President of Yardeni Research Inc. As saying, "Geopolitical crises in the Middle East have usually caused oil prices to rise and stock prices to fall. Much will depend on whether the crisis turns out to be another short-term flare-up or something much bigger like a war between Israel and Iran."

Insights from analysts

The report by Bloomberg also cited multiple analysts. Among them, here’s what three of the analysts had to say:

Gonzalo Lardies, Senior Equities Fund Manager at Andbank, mentioned that the situation would introduce increased uncertainty to the markets. He noted that inflation and growth would recede, with geopolitical risk becoming the focal point. He suggested the possibility of a surge in volatility, and he believed that short-term fixed income could once again become a safe haven, while cyclical sectors would come under the spotlight.

Guillermo Santos, Head of Strategy at iCapital, cautioned that the consequences would not be significantly negative for financial markets as long as the conflict remained limited to Palestinians and Israelis. He expressed concern that any expansion of the conflict to oil-producing countries might result in higher crude oil prices, negative inflationary effects for the West, and declining stock markets, potentially leading to a recession.

Alfonso Benito, Chief Investment Officer at Dunas Capital, offered a more optimistic viewpoint, stating that he did not anticipate the situation to have a substantial impact on markets. He acknowledged the longstanding and distressing nature of the situation but believed that, aside from short-term volatility, it would not exert a major influence.

(With inputs from Bloomberg)

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With the backdrop of an unexpected attack by Hamas on Israel, global financial markets are facing heightened uncertainty, with concerns over inflation and geopolitical risk taking centre stage.

With the backdrop of an unexpected attack by Hamas on Israel, global financial markets are facing heightened uncertainty, with concerns over inflation and geopolitical risk taking centre stage. As markets react to the unfolding crisis, analysts weigh in on potential impacts and outcomes, Bloomberg reported. The ensuing conflict, coupled with a surge in crude oil prices, has sent shockwaves through markets already grappling with rising interest rates and inflation concerns. As tensions escalated, safe-haven currencies like the yen and the dollar strengthened in the early days of the trading week. Norway's krone also saw gains, benefiting from the surge in oil prices. Meanwhile, US stock futures dipped 0.7 per cent, and Asian markets displayed mixed performance. Notably, Middle Eastern equity markets experienced a significant decline, with Israel's benchmark TA-35 stock index witnessing its largest loss in over three years. Bond traders now face a critical decision: whether to seek refuge in the safety of the dollar, forsaking higher-yield debt, or to brace for the potential impact of increased inflation. While Treasury futures gained ground at the start of the week, cash Treasuries remained closed due to a US holiday. Bloomberg quoted Ed Yardeni, President of Yardeni Research Inc. As saying, "Geopolitical crises in the Middle East have usually caused oil prices to rise and stock prices to fall. Much will depend on whether the crisis turns out to be another short-term flare-up or something much bigger like a war between Israel and Iran." Insights from analysts The report by Bloomberg also cited multiple analysts. Among them, here’s what three of the analysts had to say: Gonzalo Lardies, Senior Equities Fund Manager at Andbank, mentioned that the situation would introduce increased uncertainty to the markets. He noted that inflation and growth would recede, with geopolitical risk becoming the focal point. He suggested the possibility of a surge in volatility, and he believed that short-term fixed income could once again become a safe haven, while cyclical sectors would come under the spotlight. Guillermo Santos, Head of Strategy at iCapital, cautioned that the consequences would not be significantly negative for financial markets as long as the conflict remained limited to Palestinians and Israelis. He expressed concern that any expansion of the conflict to oil-producing countries might result in higher crude oil prices, negative inflationary effects for the West, and declining stock markets, potentially leading to a recession. Alfonso Benito, Chief Investment Officer at Dunas Capital, offered a more optimistic viewpoint, stating that he did not anticipate the situation to have a substantial impact on markets. He acknowledged the longstanding and distressing nature of the situation but believed that, aside from short-term volatility, it would not exert a major influence. (With inputs from Bloomberg) WATCH WION LIVE HERE

Middle East geopolitical crisis sends global markets into turmoil as oil prices rise

Asian shares wobbled in cautious trading on Wednesday while the dollar sagged slightly as investors braced for the US Federal Reserve's policy outcome later in the day today with many looking for any signs of a slowdown in future rate hikes.

WION Business News | Global markets brace for US Fed decision

Global markets suffered their worst slide since June 2020 amid uncertainties surrounding the war and pandemic. The Indian Rupee hit an all-time low against the US Dollar. Are these indications of a looming recession? Palki Sharma tells you.

Gravitas: Worst day for global markets since June 2020

Global markets are reacting to the new scare of the Omicron variant. Here's a report on how wall street reacted to the Omicron scare in America.

Will global markets stage a comeback?

The United Arab Emirates will shift to a working week of four and half days with a Saturday-Sunday weekend from the start of next year. This is to better align its economy with global markets. However, private companies are free to choose their own working week.

UAE to shift to working week of four and half days

Global financial markets were spooked on Tuesday after Moderna’s chief executive warned that the existing COVID-19 vaccines are unlikely to be effective against the Omicron variant.

Leading European stock markets fell about 1.5 per cent in early trade, shares in Asia-Pacific fell during Tuesday’s trade, led by declines of 2.4 per cent for South Korea’s Kospi and 1.6% for Hong Kong’s Hang Seng index. Japan’s Nikkei 225 also shed 1.6 per cent

In New York, the Dow Jones Industrial Average and the S&amp;P 500 respectively opened 0.2% and 0.3% lower, while crude oil futures shed more than 3 per cent.

“There is no world, I think, where (the effectiveness) is the same level…we had with Delta,” Moderna CEO Stephane Bancel told the Financial Times.

“I think it’s going to be a material drop. I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to…are like ‘this is not going to be good’,” he said.

Also read |&nbsp;<a href="https://www.wionews.com/world/covid-omicron-variant-causing-mild-disease-says-south-african-medical-association-slams-hype-432552">Covid: Omicron variant causing mild disease, says South African Medical Association, slams hype&nbsp;</a>

However, European Medicines Agency (EMA) and the University of Oxford, which helped AstraZeneca to develop Covid vaccine, asserted that was no evidence that the current vaccines would not work against Omicron.

EMA executive Director Emer Cooke told the European Parliament that even if the new variant becomes more widespread, existing vaccines will continue to provide protection.

Expressing similar views, the University of Oxford said it was ready to work with AstraZeneca to prepare a booster shot.

Also read |&nbsp;<a href="https://www.wionews.com/science/moderna-says-current-vaccines-not-effective-against-the-omicron-variant-432697">Moderna says current vaccines not effective against the Omicron variant</a>

"Despite the appearance of new variants over the past year, vaccines have continued to provide very high levels of protection against severe disease and there is no evidence so far that Omicron is any different," the university's statement read.

"However, we have the necessary tools and processes in place for rapid development of an updated COVID-19 vaccine if it should be necessary."

The World Health Organization and scientists have said it could take weeks to understand whether Omicron is likely to cause severe illness or escape protection against immunity induced by vaccines.

Meanwhile, several major drugmakers have already announced that they are preparing a “Omecron-specific” vaccine.

Pfizer CEO Albert Bourla has said they have already started working on a version of its COVID-19 vaccine specifically targeting the new Omicron variant.

Moderna Inc has said it was developing a booster shot against the new variant. While Johnson &amp; Johnson announced on Monday that it is “pursuing an Omicron-specific variant vaccine and will progress it as needed.”

(With inputs from agencies)

Global financial markets were spooked on Tuesday after Moderna’s chief executive warned that the existing COVID-19 vaccines are unlikely to be effective against the Omicron variant.

Global financial markets were spooked on Tuesday after Moderna’s chief executive warned that the existing COVID-19 vaccines are unlikely to be effective against the Omicron variant. Leading European stock markets fell about 1.5 per cent in early trade, shares in Asia-Pacific fell during Tuesday’s trade, led by declines of 2.4 per cent for South Korea’s Kospi and 1.6% for Hong Kong’s Hang Seng index. Japan’s Nikkei 225 also shed 1.6 per cent In New York, the Dow Jones Industrial Average and the S&P 500 respectively opened 0.2% and 0.3% lower, while crude oil futures shed more than 3 per cent. “There is no world, I think, where (the effectiveness) is the same level…we had with Delta,” Moderna CEO Stephane Bancel told the Financial Times. “I think it’s going to be a material drop. I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to…are like ‘this is not going to be good’,” he said. Also read | Covid: Omicron variant causing mild disease, says South African Medical Association, slams hype However, European Medicines Agency (EMA) and the University of Oxford, which helped AstraZeneca to develop Covid vaccine, asserted that was no evidence that the current vaccines would not work against Omicron. EMA executive Director Emer Cooke told the European Parliament that even if the new variant becomes more widespread, existing vaccines will continue to provide protection. Expressing similar views, the University of Oxford said it was ready to work with AstraZeneca to prepare a booster shot. Also read | Moderna says current vaccines not effective against the Omicron variant "Despite the appearance of new variants over the past year, vaccines have continued to provide very high levels of protection against severe disease and there is no evidence so far that Omicron is any different," the university's statement read. "However, we have the necessary tools and processes in place for rapid development of an updated COVID-19 vaccine if it should be necessary." The World Health Organization and scientists have said it could take weeks to understand whether Omicron is likely to cause severe illness or escape protection against immunity induced by vaccines. Meanwhile, several major drugmakers have already announced that they are preparing a “Omecron-specific” vaccine. Pfizer CEO Albert Bourla has said they have already started working on a version of its COVID-19 vaccine specifically targeting the new Omicron variant. Moderna Inc has said it was developing a booster shot against the new variant. While Johnson & Johnson announced on Monday that it is “pursuing an Omicron-specific variant vaccine and will progress it as needed.” (With inputs from agencies)

Global markets spooked after Moderna says Covid vaccine less effective against Omicron

Stock markets around the world recorded major losses. Meanwhile, leading producers of oil have kicked off a price war. This report tells you all you need to know about the turmoil in the global markets.

Gravitas: Decoding the slump in global markets

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