Global Markets Today, August 18, 2026: Asian Stocks Trade Lower, Oil Above $91 As US-Iran Truce Ends; India May Get Lower Open

Mumbai, August 18: Indian equity benchmarks are likely to witness a lower opening on Tuesday amid Middle East tensions, crude oil prices above $91 a barrel and elevated global bond yields. 

Asian Markets Trade Lower 

Asian stocks were lower in early trade. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.4%. 

South Korea’s KOSPI declined 0.6% as trading resumed after a holiday, while Japan’s Nikkei 225 declined 1.6%.  

Wall Street Ends Lower; Tech Stocks Remain Mixed 

US equities ended lower overnight. The Dow Jones Industrial Average declined 0.51%, while the S&P 500 fell 0.52% and the Nasdaq Composite lost 0.31%. 

Investors remained cautious as they awaited retail results, while oil prices rose. 

The technology space, however, remained divided. Micron Technology rose 4% and Applied Materials climbed 5.5%. At the same time, the S&P 500 Software & Services index dropped 2.8%, while Microsoft and Meta Platforms fell more than 3% each. 

US Futures Down 

US stock futures were largely subdued in early Asian trade, with S&P 500 e-mini futures down 0.3%. 

The broader global setup remains sensitive to energy prices and inflation expectations, particularly as geopolitical tensions threaten to keep oil elevated. 

Oil Prices Above $91 As US-Iran Truce Ends 

Crude oil is emerging as one of the biggest risks for global markets, particularly for oil-importing economies such as India. 

Brent crude futures rose 0.5% to $91.3 a barrel in Asian trade after gaining more than $2 on Monday. The rise followed the expiry of a temporary US-Iran ceasefire and growing concerns that the lack of progress on diplomacy could prolong uncertainty around energy supplies. 

For Indian markets, sustained crude prices above $90 a barrel could weigh on sentiment by increasing concerns over the country’s import bill, inflation and corporate margins. Oil-sensitive sectors could therefore remain in focus, while upstream energy companies may continue to benefit from elevated crude prices. 

Global Bond Yields Add To Caution 

Higher global bond yields are another factor likely to keep investors defensive. The US 10-year Treasury yield climbed 0.8 basis point to 4.728%, while the 30-year yield rose 0.6 basis point to 5.3146%, its highest level in more than two decades. 

Japan’s 10-year government bond yield also rose 2.5 basis points to 2.945%, a three-decade high. Rising yields can make bonds relatively more attractive and put pressure on flows into emerging-market equities, making foreign institutional investor activity an important indicator for the domestic market. 

Gold Gains, Dollar Near Two-Month Low 

Other asset classes are also signalling a cautious global environment. The dollar was trading near a two-month low, while gold extended gains for a third consecutive session, rising 0.1% to $4,420.07 an ounce. 

The combination of firmer gold, elevated crude and higher bond yields points to persistent uncertainty among global investors, with geopolitical risks remaining an important driver of asset allocation. 

Indian Markets Likely To Start On A Negative Note 

Against this backdrop, the Nifty 50 and Sensex are likely to open lower on Tuesday due to the impact of crude oil above $91 a barrel, higher US Treasury yields and US-Iran tensions. 

Investors will track crude oil prices, the rupee, foreign fund flows and further developments in the Middle East for direction during the session. Indian equities could remain volatile even if the opening is relatively subdued. 

Source

• Exchanges