Global Markets Today, October 7, 2026: Asia Declines, Wall Street Hits Records, Oil Climbs Above $100; India May Get Lower Start

Mumbai, October 7: Indian equity benchmarks are likely to open lower on Wednesday, as declining Asian markets and rising crude oil prices offset a record-setting close on Wall Street. Investors will also keep a close watch on the Reserve Bank of India’s monetary policy decision later in the day, which could set the tone for domestic equities. 

Asian Markets Decline 

Asian stocks were largely subdued in early trade, with investors assessing the impact of elevated oil prices and lingering concerns over inflation and interest rates. Japan’s Nikkei was under pressure, down 0.9%, while MSCI’s broadest index of Asia-Pacific shares excluding Japan was down 0.5%. Chinese markets remained shut for a holiday. 

The cautious mood comes despite a positive session on Wall Street, where the S&P 500 and Nasdaq closed at fresh record highs. The Dow Jones Industrial Average also advanced, as easing US Treasury yields and stabilising oil prices helped revive risk appetite. 

Wall Street Rallies To Record Highs 

On Tuesday, the Dow Jones Industrial Average rose 253.14 points, or 0.49%, to 51,521.04. The S&P 500 gained 45 points, or 0.58%, to 7,818.95, while the Nasdaq Composite climbed 122.48 points, or 0.45%, to 27,599.79. 

Technology and AI-linked stocks remained a key driver of the rally, with investors increasingly shifting their focus towards the upcoming third-quarter earnings season. Markets are also pricing in a sharply lower probability of another Federal Reserve rate hike this month, with expectations falling to around 19% from more than 50% a week earlier. 

US Treasury yields also eased after hitting multi-year highs, helping equity valuations. The 10-year Treasury yield fell around 3 basis points to 5.28%, while the 30-year yield slipped to 5.65%. 

Oil Prices Rise 

Crude oil, however, remains a key risk for global markets. Brent crude was around $101.4 a barrel, while West Texas Intermediate was about $90.12. Prices moved higher in early Asian trade on Wednesday as traders assessed the threat of supply disruptions from a storm approaching US oil-producing regions and continued attacks in the Middle East. 

The US Energy Information Administration has also raised its oil-price forecasts, citing rapidly falling global inventories and tight diesel markets. It expects Brent to average around $105 a barrel in the fourth quarter. 

Indian Markets In Focus 

For Indian equities, the global setup points to a cautious-to-negative start, with expensive crude potentially weighing on sentiment despite strong US equity cues. Higher oil prices remain particularly important for India given its dependence on imports and their implications for inflation, the rupee and corporate margins. 

Investors will therefore look beyond the opening moves and focus on the RBI’s policy verdict, while tracking crude prices, global bond yields and foreign fund flows for further direction. 

Source

•  Exchanges