Why Indian Market Crash or falling

Global Market rout: Dow, S&P 500 plummet over 2%, NASDAQ slides 2.8% over US recession fears😨

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Dhan Platform Wall Street stocks deepened their losses Monday and Tokyo had its worst day in 13 years as panic spread across trading floors over fears of recession in the United States.

New York's tech-heavy Nasdaq Composite index tumbled more than six percent of the start of trading, but pared its losses to stand down 2.8 percent in late morning trading.

The S&P 500 and the Dow were also down more than two percent.

Major European indices trimmed their losses to finish the day down around 1.5-2.0 percent.

Tokyo's Nikkei tanked more than 12 percent in its worst day since the Fukushima crisis in 2011. It also suffered its biggest ever points loss, shedding 4,451.28.

 

The market meltdown was triggered by a weak US jobs report on Friday which showed the unemployment rate reached its highest since October 2021.

The report came two days after the US Federal Reserved decided, as expected, to keep interest rates at a 23-year high while signalling that it could cut them in September.

"Investors are gripped by fears that the Federal Reserve has waited too long to pivot on its policy, especially in light of Friday's disappointing US jobs data and a slew of other weak economic indicators pointing toward a looming recession," said market analyst Fawad Razaqzada at City Index and FOREX.com.

Friday's much-anticipated report showed the US economy added just 114,000 jobs last month, well down from June and far fewer than expected, with unemployment at 4.3 percent.

The news came a day after lacklustre factory data.

Investors fear the Fed's high rates, which aimed to slash inflation, could be plunging the economy towards a hard landing and recession instead of the soft landing sought by the central bank.

Some analysts pointed to the "Sahm Rule", which says an economy is in the early stages of recession if the three-month moving average of unemployment is 0.5 percentage points above its low over the previous 12 months. That was triggered by Friday's data.

But Chicago Federal Reserve President Austan Goolsbee said on CNBC that US jobs numbers are "not looking yet like recession" but said if conditions deteriorate "we're going to fix it."

Speculation that the Fed could cut more aggressively than expected from September, or even be forced into an emergency reduction this month, sent the dollar sliding against the yen.

The Japanese currency was boosted also by a Bank of Japan interest-rate hike last week, analysts said.

The dollar went under 142 yen for the first time since January.

- Bitcoin, oil retreat -

Markets tumbled across the board Monday, with Brent North Sea crude reaching the lowest level in more than six months despite heightened Middle East tensions, while bitcoin slumped more than 10 percent to under $50,000.

"Aside from ongoing worries about a US recession, the continuation of the pressure on markets has been attributed to unwinding of the yen carry trade and geopolitical fears surrounding an expected Iranian military retaliation against Israel after Israel killed a high-ranking Iranian military official," said Briefing.com analyst Patrick O'Hare.

Many investors have borrowed at low interest rates in a weak yen to invest in higher yielding assets in other currencies, but the abrupt surge in the yen is forcing many to unwind the trades.

O'Hare also noted big falls in tech and semiconductor shares.

That helped fuel sharp drops in Asia markets and US tech shares were also pulling down Wall Street indices.

Shares in AI chip manufacturer Nvidia plunged 14.6 percent at the start of trading, but later clawed back more than half of those losses.

The market might be falling due to a combination of factors such as economic downturns, geopolitical tensions, and shifts in investor sentiment. Economic indicators like rising inflation, increasing interest rates, or disappointing corporate earnings can trigger sell-offs.

Bangladesh crisis top developments: India halts fights, trains to Dhaka; 300 Indian trucks stuck

Bangladesh plunged into yet another episode of political strife after Sheikh Hasina fled the country on Monday. Hasina, who resigned as the Bangladesh Prime Minister following the nationwide student protests, landed in India in a military aircraft along with her sister Sheikh Rehana.

As Bangladesh Army sets up an interim government, here are top five updates:

1: Around 300 trucks are reportedly stuck on the Bangladeshi side of the Indo-Bangla border, an Indian Express report says. The report added that all movements to and from Petrapole – the land port on the Indian side – have been stopped due to the ongoing crisis. On an average, roughly 500 trucks move from India to Bangladesh via this land port. It is the largest land port in entire South Asia. The Indian Express report said that over 20 lakh people cross the Petrapole check post annually.

2: Not only trucks, other services such as train and flights also face major disruption due to the unrest. Soon after the news broke out of the protests spiraling into major crisis, India announced complete suspension of all train services between the two nations. An Economic Times report said that an Indian passenger train was stuck in Bangladesh at the moment.

3: The crisis has also impacted the air route as well. Air India and Indigo have suspended all flights to and from Dhaka with immediate effect.

4: There is a high alert in force by the Border Security Force due to the strife. India and Bangladesh share over 4,000 km of porous border.

5: Sheikh Hasina, who is currently in India, has met foreign minister S Jaishankar, National Security Adviser Ajit Doval. While there is no confirmation, there's a strong buzz that Hasina will fly to London after a brief stopover in Delhi.

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