Global Markets Today, August 12, 2026: Asian Stocks Mixed, Wall Street Weak, Oil Prices Climb; India May Get Cautious Start

Mumbai, Aug 12: Indian equity benchmarks are likely to start lower on Wednesday as Asian markets remained mixed and crude oil prices kept investors on edge. Investors will also remain watchful of upcoming US inflation data which could set the tone for US interest rates. 

Asian Markets Mixed 

Asian equities remained mixed amid elevated oil prices. Japan’s Nikkei was up 0.1% while South Korea’s Kospi was up 4.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.8%. 

Oil prices continued to climb as uncertainty over the reopening of the Strait of Hormuz persisted. 

Wall Street Ends Lower 

U.S. stocks ended lower on Tuesday as investors turned cautious amid the lack of progress in U.S.-Iran negotiations and a rise in crude oil prices. The S&P 500 and Nasdaq were weighed down by declines in major technology stocks, while energy shares benefited from higher oil prices. 

U.S. stock futures were muted on Wednesday, pointing to limited risk appetite ahead of the next trading session. Investors are also looking ahead to upcoming U.S. inflation data for clues on the Federal Reserve’s interest-rate path. 

The rise in oil prices could complicate the inflation outlook and potentially reduce expectations for monetary easing if energy costs remain elevated for an extended period. 

European Stocks Hold Near Records 

European equities showed greater resilience, with the pan-European STOXX 600 ending almost flat on Tuesday and remaining close to record highs. Energy stocks gained sharply as higher crude prices boosted the sector, helping offset weakness in other parts of the market. 

The energy sector climbed 1.7%, while technology stocks rose 1.1%. European markets have also drawn support from optimism around the corporate earnings season, with second-quarter earnings expected to show strong growth. 

However, the oil rally remains a risk for the region as prolonged energy-cost pressures could feed into inflation and delay interest-rate cuts. 

Oil, Geopolitics Key for Dalal Street 

For Indian equities, the global setup points to a cautious to mildly negative opening on Wednesday. While mixed Asian markets could limit the downside, elevated crude prices and uncertainty over the U.S.-Iran situation are likely to keep investors defensive. 

Oil-sensitive stocks are likely to remain in focus. Upstream oil producers could benefit from higher crude prices, while aviation, paints, chemicals and other fuel-intensive businesses could face pressure from rising input costs. 

Banking and financial stocks may also remain under scrutiny after recent volatility in the broader market, with investors likely to favour companies with relatively strong earnings visibility. 

Rupee, Crude to Set Tone 

The rupee will be another important market indicator. A sustained rise in crude prices could increase dollar demand from oil importers, putting pressure on the domestic currency and potentially adding to imported inflation. 

For the benchmark indices, the immediate direction is therefore likely to depend on overnight movements in crude oil, Asian equities and the rupee rather than any single domestic trigger. 

Overall, the combination of mixed global equities, muted U.S. futures, firm European markets and elevated oil prices suggests that the Sensex and Nifty could start Wednesday’s session on a subdued note. Investors are likely to remain selective and watch geopolitical developments closely, with volatility expected to remain elevated until there is greater clarity on the U.S.-Iran negotiations and the outlook for global energy supplies. 

Source

•  Exchanges