Global Markets Today, October 26, 2026: Asian Shares Decline, Oil Eases From Six-Month High; Indian Markets Seen Opening Cautiously

Mumbai, October 26: Asian markets traded largely lower on Monday, October 26, while US and European equity futures edged mostly higher and crude oil prices retreated from six-month highs. The mixed global cues are likely to keep Indian equity benchmarks on a cautious footing at the opening bell, with elevated oil prices and geopolitical tensions continuing to weigh on investor sentiment. 

The Sensex and Nifty had declined 2.4% and 2.2%, respectively, last week, falling in all four trading sessions as surging crude prices and tensions in the Middle East fuelled concerns about inflation and energy supplies. 

Asia declines 

Japan’s Nikkei 225 slipped 0.76% on Monday after losing 4% last week, while South Korea’s benchmark Kospi fell 1.6%, extending its losses for the month to nearly 20%. China’s blue-chip CSI 300 index declined 0.7%. Weakness across the region reflected persistent concerns about energy costs and domestic demand, alongside caution ahead of key central bank decisions and corporate earnings. 

US, European futures edge mostly higher 

Among US equity futures, S&P 500 futures rose 0.08%, while Nasdaq futures edged down 0.14%. In Europe, EURO STOXX 50 futures gained 0.2%, with DAX futures also rising 0.2% and FTSE futures advancing 0.12%. 

Investors are preparing for a busy week of earnings from major technology companies, including Microsoft, Alphabet and Amazon, alongside results from Intel and Sandisk. The announcements are expected to offer clues about whether heavy investment in artificial intelligence can sustain the sector’s growth and justify elevated valuations. 

Markets are also looking ahead to the US Federal Reserve’s policy decision later this week. The Fed is widely expected to hold interest rates steady in October, although traders increasingly anticipate a possible rate hike in December as persistent inflation complicates the outlook. Higher borrowing costs could weigh on emerging-market equities by supporting the dollar and reducing the relative appeal of riskier assets. 

Crude oil eases but remains a concern 

Brent crude futures fell 1.9% to $114.5 per barrel, while US West Texas Intermediate crude declined 2.13% to $101.1. The retreat followed reports of diplomatic efforts involving Qatar and Iran to ease regional tensions. 

However, Brent had surged 6.2% last week, reaching its highest weekly close since mid-2022, amid concerns about supply disruptions following Houthi attacks in Saudi Arabia. For India, a major oil importer, persistently high crude prices threaten to raise import costs, put pressure on the rupee and complicate the inflation outlook. 

With regional equities weak and oil still hovering above $110 a barrel, domestic markets may struggle to stage a meaningful recovery at the open. Investors will track crude movements, developments in the Middle East, foreign fund flows and upcoming corporate earnings for direction through the session. 

Source

•  Exchanges