Sensex, Nifty Set To Extend Losses As Israel Launches 'pre-emptive Strikes' Against Iran

(RTTNews) - Indian shares may extend losses from the previous session on Friday after Israel launched an airstrike on Iran and declared a special state of emergency.

Brent crude futures surged more than 9 percent as the attack escalated tensions in the Middle East, a major oil producing region.

On the tariff front, U.S. President indicated flexibility on extending the July 8 deadline for securing trade agreements with key trading partners, adding he believes it might not be essential.

Meanwhile, the specifics of the latest U.S-China framework agreement and details on how it will be implemented remain unclear.

It appears that there may still be significant disagreements and some details are yet to be worked out.

Benchmark indexes Sensex and Nifty fell around 1 percent each on Thursday in the face of trade uncertainties and heightened geopolitical risks.

The rupee ended down 9 paise at 85.60 against the greenback, snapping its five-day winning streak, pressured by corporate demand for dollars and likely portfolio outflows.

Asian markets traded lower this morning, with Japan and South Korea leading regional losses, led by a sell-off in U.S. equity futures.

The dollar and bond yields fell, sending investors scurrying to safe havens such as gold and the Swiss franc.

Gold climbed more than 1 percent to $3,427 per ounce, while Brent crude futures were up 9.1 percent at $75.69 a barrel.

Overnight, U.S. stocks recovered from an early slide to end modestly higher, buoyed by a strong rally in Oracle shares and data showing that producer price inflation rose less than expected in May.

The dollar hit a three-year low and U.S. 30-year yields approached the 4.8 percent mark after a solid sale of long-term Treasuries.

The Dow gained 0.2 percent and the S&P 500 added 0.4 percent to reach three-month closing highs while the tech-heavy Nasdaq Composite edged up by 0.2 percent.

European stocks ended mostly lower on Thursday, with renewed trade and geopolitical tensions weighing on markets. The pan European STOXX 600 declined 0.3 percent.

The U.K.'s FTSE 100 rose 0.2 percent as downbeat GDP data spurred hopes the Bank of England may cut interest rates again soon. France's CAC 40 slid 0.1 percent and the German DAX fell 0.7 percent.