1) Middle East conflict
Iran Saturday night launched a drone missile attack on Israel. This was in response to a suspected Israeli strike on its consulate in Damascus on April 1 in which seven Iranian Revolutionary Guard Corps personnel, including two generals, were killed.
Due to this, Sensex and Nifty experienced sharp declines on Monday
2) Global Markets
Markets in Asia began the week on a cautious footing.
Japan’s Nikkei slid 0.9%, while Australia’s S&P/ASX 200 index lost 0.46%. Korea’s Lospi Index slumped 0.4%.
Israel’s shekel rose 1% and the pan-European STOXX 600 climbed 0.3%, albeit led by defence stocks.
3) Rise in Treasury Yields
US Treasury yields held near their recent highs as traders pared back their expectations of the pace and scale of rate cuts from the Federal Reserve this year.
The benchmark 10-year yield rose 0.068% to 4.567%, while the two-year yield held near the 5% level and was last at 4.935%.
4) Rupee at closing low
The Indian rupee fell to its weakest closing level on record due to rising Middle East tensions weighed on Asian currencies
The rupee ended at 83.4500 per US dollar
5) Oil Impact
Brent was last 1% lower at $89.46 per barrel, while U.S. West Texas Intermediate crude futures fell roughly 1.2% to $84.61 a barrel.
