Global Markets Turn Cautious as Investors Track War, Oil and US Rates

Global equities began the week cautiously as investors assessed the latest developments in the Middle East. Asian markets faced pressure while crude moved higher, reflecting renewed concern about the economic impact of the conflict.

Investors are also waiting for important US economic signals and Federal Reserve commentary. The direction of US interest rates remains crucial for emerging markets because it influences global bond yields, the dollar and foreign investment flows.

For Indian markets, the combination of higher oil + geopolitical risk + foreign flows + US monetary policy will remain the key combination to monitor.