Stock market regained momentum as US-Iran tension subsides, oil prices fall by nearly 7%

New Delhi: The effects of signs of easing of the increasing tension between America and Iran were seen in the stock markets around the world on Monday. The hope of resumption of ceasefire talks between the two countries reduced investors’ concerns, due to which global markets regained momentum. At the same time, a decline of about 7 percent was recorded in the prices of crude oil.

In the international market, the price of Brent crude fell to around $ 85.49 per barrel, while American WTI crude also fell to $ 83.06 per barrel. Due to low oil prices, investor confidence increased and stock markets of many countries were seen trading in the green.

What is the condition of European markets?

Major markets of Europe also registered good gains and Germany’s DAX, France’s CAC 40 and Britain’s FTSE 100 all opened with gains. At the same time, before the opening of the American stock market, strength was also seen in the futures of S&P 500 and Dow Jones. The performance of Asian markets was also positive. There was a buying environment in the stock markets of Japan, South Korea, Hong Kong, China and India. However, Taiwan’s market closed with a slight decline.

Global economy may get relief

Meanwhile, China’s memory chip manufacturing company CXMT made a great debut in the stock market. The company’s shares jumped by 466 percent on the very first day of listing, due to which its market value increased rapidly. Although there is an atmosphere of relief in the market at present, but experts believe that investors will now keep an eye on the meeting of the Federal Reserve of America. The decision taken regarding interest rates can decide the direction of the market in the coming days.

Apart from this, inflation, global economic conditions and quarterly results of companies will also be important for investors. Experts say that if oil prices remain soft, it can provide relief to the global economy. However, it will still be important to keep an eye on geopolitical developments and decisions of central banks.