Global Markets Today: India May See Cautious Start As Brent Crude Hovers Above $110

Mumbai, October 22: Asian markets were mixed on Thursday, October 22, as optimism over strong technology earnings on Wall Street was offset by concerns over escalating geopolitical tensions in the Gulf and the sustainability of artificial intelligence (AI) investments. Elevated crude oil prices also kept investors on edge, pointing to a cautious start for Indian equity markets, with domestic earnings and global cues likely to dictate the direction through the session.

Asian Markets Today

Asian equities struggled to sustain gains in early trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 1.3%, putting it on course for a fourth consecutive week of losses. Japan’s Nikkei 225 slipped 1%, while South Korea’sKospi declined 2.2%, reflecting lingering investor caution despite overnight gains on Wall Street.

The subdued sentiment came as investors assessed the latest corporate earnings and weighed the risks posed by uncertainty in the Middle East. Strong results from technology companies offered some support, but concerns over the scale and profitability of AI-related spending continued to temper risk appetite.

US Markets

Wall Street closed higher on Wednesday, led by technology stocks, as quarterly results from SpaceX and AI server maker Super Micro Computer helped revive interest in AI-linked shares. The Nasdaq Composite rose 1.05% to 26,702.86, while the S&P 500 gained 0.58% to 7,757.17. The Dow Jones Industrial Average advanced 360.21 points, or 0.69%, to settle at 52,856.09.

SpaceX shares climbed 7.8% after the company reported its first profit as a publicly traded company. Super Micro Computer surged 9.6% after forecasting quarterly revenue and profit margins above analysts’ expectations, lifting peers Hewlett Packard Enterprise and Dell.

Meta Platforms also reported third-quarter revenue above expectations, although its proposed issuance of non-voting shares renewed questions about its AI spending plans. The gains in US technology stocks, however, failed to translate into a broad rally across Asian markets.

US stock futures turned lower on Thursday, with S&P 500 futures down 0.5%, signalling that investors remained cautious amid the upcoming US Federal Reserve decision, geopolitical risks and the ongoing earnings season.

Crude Oil Prices Today

Crude oil prices rose further amid concerns over potential supply disruptions in the Middle East. Brent crude futures gained 1.7% to $110.7 a barrel, while US West Texas Intermediate crude rose 1.4% to $98.5.

The increase followed reports of heightened regional tensions, including Houthi attacks on Saudi Arabia and concerns about a possible renewed US-Israeli confrontation with Iran. Any further escalation could threaten energy supplies and keep oil prices elevated.

Indian Stock Market Outlook Today

For Indian markets, mixed Asian cues, weaker US futures and crude oil hovering above $110 a barrel suggest a cautious opening. While Wall Street’s technology-led gains could offer some support to IT stocks, elevated oil prices remain a concern for an import-dependent economy, potentially adding to inflationary pressures and weighing on sentiment. Investors will also track domestic corporate earnings and stock-specific developments for direction.

Source:

• Exchanges