Investors around the world were keeping an eye on the situation in the Middle East with bated breath for the last several days. The increasing tension between America and Iran had created an atmosphere of fear in the stock market. But, amidst this huge tension, a sudden announcement by US President Donald Trump has given a big relief to the whole world.
Hope for peace amidst the dark clouds of war
The tension that was going on between America and Iran for the last few weeks had put the global economy in deep crisis. The situation was becoming explosive due to the closure of the Strait of Hormuz and continuous attacks. However, President Trump issued a statement saying that there have been very positive and relief talks between America and Iran in the last two days. Seeing the good atmosphere of this conversation, America has taken a big step. Trump has given clear instructions to his Defense Department that there should be no military attack on Iran’s power plants and energy sites for the next five days.
Big change in Trump’s stance
This announcement is also considered very important from the diplomatic point of view. Till some time ago, the US President was adamant on Iran’s unconditional surrender. But now he says that both the countries are having constructive discussions towards ending the disputes in the Middle East. Trump has made it clear that this five-day moratorium on attacks will depend on the success of further meetings. If the talks are successful, a permanent ceasefire may be seen. Otherwise, the situation may become tense again.
Global market excited, indices took a long flight
The first and strongest impact of this peaceful message of Trump was seen on the stock markets around the world. The biggest fear that the market had was that the attack on Iran’s oil facilities would stop the supply, that fear has now subsided. Due to this relief, Gift Nifty traded in Singapore jumped by more than 800 points and reached the level of 23,533. Not only the Asian markets, greenery also returned in the markets of western countries. Dow Jones Futures jumped 926 points (2.03%) to reach 46,503. Germany’s DAX is trading 439 points and Britain’s FTSE is also trading with gains.
- Dow Jones futures: up 46,503.58 (+926.11 points, +2.03%)
- DAX: up 22,819.50 (+439.31 points, +1.96%)
- FTSE: up 9,933.95 (+15.62 points, +0.16%)
- GIFT NIFTY 23260 (up 835.50 (3.64%)
How will the day be for investors on Tuesday?
Now the biggest question is that when the Indian stock markets open on Tuesday, March 24, what will be the situation for common investors? The direct answer to this is that there will be a big and spectacular rise in the market. After the huge surge in Gift Nifty, it is believed that the domestic market (Sensex and Nifty) will have a very strong start. For those investors who were worried after seeing red marks in their portfolio for the last few days, this news is like a lifesaver. The movement of the market for the next 4 days will depend on which direction the talks between America and Iran proceed.