GIFT Nifty is trading 350 points higher in late trading on Tuesday, 14 April, indicating that markets could recover all of Monday’s losses when they resume normal trading on Wednesday, 15 April.
The shift in sentiment comes amid the possibility of between the US and Iran, boosting risk appetite globally.
The talks, which collapsed over the weekend, are likely to resume this week, as Pakistan has reportedly said it is trying to bring the United States and Iran together for further negotiations. Negotiating teams from the US and Iran could return to Islamabad this week to resume talks aimed at ending the war, sources told Reuters.
Hopes of fresh talks ahead of the expiry of the two-week ceasefire come even as US President Donald Trump said on Monday that the US military has begun a blockade of all Iranian ports and coastal areas.
US stock market recovers war-driven losses
The US key averages have extended their winning run in Tuesday’s trade, with the S&P 500 rising 1% to 6,961, after rallying the previous day back to its pre-war levels, before the United States and Israel launched attacks on Iran in late February.
It is now . Gains in big tech stocks have helped push the S&P 500 back to pre-war levels.
The Dow Jones Industrial Average rose 290.36 points, or 0.60%, to 48,508.61, while the Nasdaq 100 rose 1.48% to 24,984, marking its 10th straight day of gains and putting it on track for its longest winning streak since 2021. The tech-heavy index has rebounded 8.51% in April so far.
Last week’s that peace talks will resume are supporting the rally. In addition, Citi and BlackRock have turned bullish on US equities, citing expectations of resilient corporate earnings, particularly in the technology sector.
Turning to Europe, all major indices closed in the green on hopes that a deal in the Middle East will help normalise energy flows and ease concerns over a global inflationary spiral.
On the currency front, the dollar index, which measures the greenback against a basket of currencies including the yen and the euro, has fallen closer to its late February levels, slipping a further 0.29% on Tuesday to 98.05.
Brent slips towards $94 per barrel
as expectations for further dialogue to end the war outweighed concerns over supply disruptions.
The benchmark US crude fell by $7 to $92 a barrel, while Brent crude, the international benchmark, dropped $4.73 to $94.63 a barrel. In the previous session, both benchmarks had risen by up to 4.3% as tensions resurfaced in the region, reigniting supply disruption concerns.
Meanwhile, the International Energy Agency (IEA) projects that global oil demand will decline this year for the first time since the 2020 pandemic, as the price surge caused by the Middle East conflict weighs on consumption.
Last month, the Paris-based IEA oversaw the release of a record 400 million barrels from emergency oil reserves by members including the US, Japan, and Germany in an effort to tame spiralling costs, but this had only a limited impact on cooling energy prices.
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