Global equity markets ended Monday largely higher as investors welcomed signs of possible diplomatic progress between the United States and Iran, sending oil prices sharply lower and easing concerns about inflation, interest rates and further disruption to international energy supplies.
The strongest gains were recorded on Wall Street, where the Dow Jones Industrial Average reached a record closing high. European shares also advanced, although London underperformed, while Asian markets delivered a more divided performance amid continued volatility in technology shares.
MSCI’s index of global equities increased by 0.94 per cent, reflecting broader demand for risk assets as investors moved away from some of the defensive positions built during the recent escalation in the Middle East.
Wall Street reaches new record
The Dow Jones Industrial Average rose by 693.38 points, or 1.32 per cent, to close at a record 53,178.41.
The broader S&P 500 climbed 1.48 per cent to 7,600.50, while the technology-heavy Nasdaq Composite gained 2.13 per cent to finish at 25,913.90.
Technology and communication companies led the rally. Amazon advanced 4.6 per cent, taking its market value above $3tn for the first time. Meta Platforms and Alphabet also contributed to a 4.3 per cent rise in the S&P 500 communication-services sector.
Approximately 85 per cent of the S&P 500 companies that had reported quarterly results by the end of last week exceeded analysts’ expectations, helping to restore confidence after a volatile July.
Energy shares moved in the opposite direction as crude prices declined.
European shares approach record levels
The pan-European STOXX 600 closed 0.5 per cent higher at 652.09, leaving the index close to its recent record.
Travel and leisure shares benefited from falling fuel prices, while aerospace and defence companies were among the strongest performers. The sector gained 2.7 per cent.
London’s FTSE 100 was the main exception among the major European markets, slipping 0.1 per cent to 10,857.70. AstraZeneca fell 9 per cent following reports of possible merger discussions with US pharmaceutical group Bristol Myers Squibb.
The broader UK-focused FTSE 250 performed considerably better, rising almost 1 per cent.
Asian markets remain divided
Asian trading was more volatile. Japan’s Nikkei 225 declined 1.4 per cent as a stronger yen placed pressure on exporters following coordinated American and Japanese intervention in the currency market.
South Korea’s KOSPI fell approximately 5.1 per cent as investors took profits after Friday’s record surge. Samsung Electronics and SK Hynix led the retreat in technology shares.
India moved firmly higher. The Nifty 50 gained 1.6 per cent to 24,774.30, while the Sensex rose 0.7 per cent to 78,639.03. Lower oil prices supported Indian equities because the country imports most of its crude requirements.
Oil leads the global move
Brent crude fell $6.35, or 7 per cent, to settle at $83.77 a barrel. US West Texas Intermediate declined 5.1 per cent to $80.34.
The sell-off followed Washington’s decision to suspend fresh military action against Iran and pursue negotiations, although Tehran denied that direct talks were taking place.
Lower oil prices also reduced pressure on government bonds. The yield on the benchmark US ten-year Treasury fell to 4.684 per cent, while gold edged 0.33 per cent higher to $4,054.44 an ounce.
Monday’s rally showed that markets remain highly sensitive to developments involving Iran, energy supplies and the Strait of Hormuz. Investors will now watch whether diplomatic signals develop into a credible agreement or prove to be another temporary pause in the conflict.
Newshub Editorial in Global Markets – 4 August 2026
Ask NF GPT
If you have an account with ChatGPT you get deeper explanations,
background and context related to what you are reading.
Recent Comments