Global markets were in the deep red on Monday as the US economic slowdown weighed heavily on the financial markets.

Heavy selling pressure was seen in all major Asian markets. Japan crashed by 10 per cent, Seoul tumbled over 8 per cent, Taipei fell by 4.43 per cent, Jakarta was down nearly 2 per cent, Hong Kong and Shanghai were down 1.43 per cent and 0.83 per cent) respectively.

South Korea’s news agency Yonhap reported that due to a crash trading in the local benchmark index KOSPI 200 index held for five minutes.

The US stocks fell for the second consecutive session on Friday last week, with the Dow Jones Industrial Average sliding 1.51 per cent and the tech-heavy Nasdaq Composite sinking 2.43 per cent.

A disappointing jobs report spurred investor fears that the world’s largest economy is headed toward a recession, the report said

Indian stock markets also opened in the deep red on Monday. At 11 a.m., the Sensex was at 78,798, down 2,183 points or 2.70 per cent, and the Nifty was at 24,061, down 657 points or 2.66 per cent.

Santosh Meena, Head of Research, Swastika Investmart said, “The global market is reeling as bears enter with a cocktail of bad news. The fear of a reverse Yen carry trade, following an interest rate hike in Japan, was the initial catalyst. This was compounded by fears of a recession in the USA after extremely poor job data, which spooked market sentiment.”

“The rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in the US job creation in July and the sharp rise in the US unemployment rate to 4.3 per cent. Geopolitical tensions in the Middle East also are a contributing factor,” other experts said.

G7 FMs urge efforts to avoid further escalation of Middle East conflict

The foreign ministers of the Group of Seven (G7) countries urged all actors involved in the current Middle East crisis to refrain from any step that could possibly escalate the conflict further.

“We call on the parties concerned to desist from any initiative that could hinder the path of dialogue and moderation and encourage a new escalation,” the G7 Italian presidency said in a statement on Sunday.

After discussing the latest developments in a videoconference, the ministers expressed “strong concern about recent events that threaten to lead to a regionalisation of the crisis, starting with Lebanon,” according to Italy’s Foreign Minister Antonio Tajani.

The G7 extraordinary meeting was called after a recent escalation in the crisis, reports Xinhua news agency.

Tensions escalated after the assassinations of Lebanese group Hezbollah’s senior military commander, Fouad Shokor, in Beirut and Hamas’ political leader, Ismail Haniyeh, in the Iranian capital Tehran on July 31.

A few days earlier, a rocket strike in the Israeli-occupied Golan Heights had killed 12 children and teens.

Iran, Hamas, and Hezbollah blamed Israel for the killings and threatened to retaliate. Israel claimed responsibility for Shokor’s death, saying it was in retaliation to the strike in the Golan, but it did not confirm involvement in the killing of Haniyeh.

Since then, the exchange of fire and rockets ongoing across the Israel-Lebanon border has intensified, and so have the diplomatic efforts to contain the crisis.

“We reaffirmed the priority of a successful conclusion of negotiations on a ceasefire in Gaza and the release of the hostages and confirmed our commitment to intensify humanitarian aid to the populations of the Strip,” the G7 presidency stressed.

Also on Sunday, Italy’s Foreign Minister called on all Italians temporarily in Lebanon to leave the country as soon as possible due to “the worsening situation” and to all citizens to avoid travelling there. Earlier, many other governments, including those of France, the United States, Saudi Arabia, the United Kingdom and Jordan also issued advisories.

The G7 comprises Canada, the US, France, the UK, Italy, Germany and Japan. AGENCIES

At least eight people were shot dead when a group of unidentified gunmen attacked a local community in Nigeria’s southern state of Imo, police said.

The eight deceased were identified as village heads in the Umucheke community of Onuimo Local Government Area, Aboki Danjuma, Imo State police commissioner, told the media during an on-the-spot assessment of the incident on Sunday morning, reports Xinhua news agency.

Danjuma said at least six gunmen, who rode on three motorcycles, stormed the community to wreak havoc late Saturday. They identified the homes of the deceased, perpetrated the killings, and fled through a bush path.

Alleging that members of the outlawed Indigenous People of Biafra/Eastern Security Network, an armed group in the southern part of the country, were responsible for the attack, Danjuma said security agencies are currently combing nearby forests in search of the perpetrators of the “dastardly act.” AGENCIES

Three people were killed in a building collapse in the city of Shebin El-Kom in Menoufia Governorate, northern Egypt, according to a statement by local authorities.

Civil protection and ambulance teams were dispatched to the site for rescue and search operations on Sunday, reports Xinhua news agency, citing the statement.

A security cordon was imposed around the area, and adjacent houses were evacuated in preparation for the removal of the rubble.

The Governor of Menoufia, Ibrahim Abu Limon, stated that a restoration order had been issued for the building, but the owner did not carry out the necessary work.

This led the governorate to issue a removal order, which was also not implemented by the landlord.

Further details are awaited. AGENCIES

The Ministry of External Affairs (MEA) has advised all its citizens to avoid travelling to Bangladesh amid the ongoing violent protest in the country till further notice.

India on Sunday night advised all its nationals currently residing in Bangladesh to exercise “extreme caution” and restrict their movements in the wake of fresh waves of violence in the neighbouring country.

At least 90 people, including 14 policemen, were killed on Sunday in fierce clashes between security forces personnel and anti-government protesters in different parts of Bangladesh, according to reports from Dhaka.

The protesters are demanding the resignation of Prime Minister Sheikh Hasina.

“All Indian nationals presently in Bangladesh are advised to exercise extreme caution, restrict their movements and remain in contact with the High Commission of India in Dhaka,” it said.

The student protests in Bangladesh started last month against a controversial job quota scheme. The protests now have turned into an anti-government agitation.

On July 25, the MEA said around 6,700 Indian students returned from Bangladesh given the situation in that country. AGENCIES

India, the world’s third-largest importer of crude oil, stands to gain as oil prices have fallen to an eitht-month low at $75.8 a barrel in the international market, with a more than $4 a barrel decline since Friday as the slowdown in the US and Chinese economies have raised fears of dampening demand.

With US job data showing an increase in the unemployment rate and a sharp fall in Chinese consumption of fuel amid a slowing economy, concerns of a dip in demand outweigh the supply-side fears caused by geopolitical tensions, according to market analysts.

The benchmark Brent crude fell by more than $1.04 to $75.8 a barrel on Monday after an over three per cent decline, while US West Texas Intermediate crude has come down to $72.43 a barrel.

The decline in oil prices augurs well for the Indian economy as the country imports around 85 per cent of its crude requirement and any decline in oil prices leads to a reduction in the country’s import bill. This in turn leads to a lowering of the current account deficit (CAD) and strengthening of the Rupee.

Apart from strengthening the external balance, a decline in oil prices also leads to lower prices of petrol, diesel and LPG in the domestic market, which in turn eases inflation in the country.

The government has also helped reduce the country’s oil import bill by allowing the oil companies to buy Russian crude at discounted prices despite Western pressures in the wake of the war with Ukraine. The Narendra Modi government has stood firm in maintaining its ties with Russia despite the sanctions against Moscow imposed by the US and Europe.

Russia has emerged as the largest supplier of crude oil to India replacing Iraq and Saudi Arabia which occupied the top slot earlier. India has in fact become the largest purchaser of Russia’s seaborne oil which accounted for close to 38 per cent of India’s total oil imports.

According to an ICRA report, the price of oil imports from Russia was 16.4 per cent and 15.6 per cent lower than the corresponding levels from the Gulf countries in FY2023 and 11 months of FY2024, respectively.

India’s strategy of continuing to buy cheap oil from Russia has resulted in the saving of around $7.9 billion in the country’s oil import bill during the first 11 months of the fiscal year 2022-23 and also helped the country to lower its CAD.

These large purchases of Russian oil have also helped keep prices in the world market at more reasonable levels which have benefited other countries as well.

Data compiled by the Ministry of Commerce and Industry shows that in terms of volume, the share of crude petroleum imported from Russia jumped to 36 per cent in 11 months of FY2024 from two per cent in FY2022, while that from West Asian countries (Saudi Arabia, the UAE and Kuwait) fell to 23 per cent from 34 per cent. The discounts on Russian oil generated huge savings in the oil import bill. AGENCIES

Iranian Foreign Ministry Spokesman Nasser Kanaani has condemned Israel’s deadly airstrikes on the schools of al-Nasr and Hassan Salama in Gaza City.

In a post on Sunday on social media platform X, Kanaani described the raid, which killed at least 25 Palestinians and wounded dozens of others earlier in the day, as Israel’s “newest war crime”.

Israeli Army Spokesperson Avichay Adraee said in a statement that Israeli warplanes attacked militants operating inside Hamas command and control complexes that were hidden inside the schools, Xinhua news agency reported.

Kanaani stressed that despite the Israelis’ “horrifying brutality” and “war crimes”, “the strategic balance in the Palestinian lands as well as the region will not tilt in favour of Israel and its delusional supporters”.

The Israeli army has been conducting a large-scale offensive on Gaza since October 7, 2023, after Hamas carried out an unprecedented attack on the Israeli towns adjacent to the strip, killing nearly 1,200 people.

The Palestinian death toll from ongoing Israeli attacks in the Gaza Strip has risen to 39,583, Gaza-based health authorities said in a statement on Sunday. AGENCIES

Iranian President Masoud Pezeshkian and Jordanian Foreign Minister Ayman Safadi have exchanged views on the assassination of Hamas Politburo Chief Ismail Haniyeh.

In a meeting in the Iranian capital Tehran, the two sides also discussed the improvement of bilateral relations and the developments of Gaza, according to a statement published on Sunday on the website of the Iranian President’s office.

Pezeshkian said the “cowardly” assassination of Haniyeh in Tehran was a “big mistake” by Israel, noting that Iran expected all Muslim states and the world’s free people to strongly condemn such “crimes” as reported by Xinhua news agency.

He stressed that Israel’s “audacious” action would not go unanswered, adding those who claim to defend freedom, democracy and human rights had employed all their scientific and operational capabilities to “spread terrorism” and commit “heinous crimes”.

He highlighted the necessity to strengthen solidarity among Muslim countries to stop Israel’s “aggressions and crimes against the oppressed Palestinians in Gaza”.

Pezeshkian expressed hope that negotiations between Iranian and Jordanian diplomatic delegations on the resumption of normal relations would soon come to fruition, enabling the two Islamic countries to use each another’s capacities and people in the region to benefit from “friendship and constructive cooperation” between Tehran and Amman.

The Jordanian Foreign Minister, for his part, said his country had condemned the assassination of Haniyeh, describing the action as being in line with Israeli Prime Minister Benjamin Netanyahu’s efforts to widen the scope of the conflict in the region.

Safadi also conveyed Jordanian King Abdullah II’s congratulations to Pezeshkian on his election as Iran’s President, saying Jordan was seeking to resume normal relations with Iran and to work together on ensuring stability, stability, security and calm in the region.

He voiced Jordan’s willingness to expand relations with Iran, saying his rare visit to Iran was aimed at exploring ways to strengthen bilateral ties.

Turning to the situation in Gaza, Safadi emphasised that his country had, from the very beginning, strongly condemned Israel’s “brutal aggression” against Gaza.

Earlier on Sunday, Safadi met Iran’s Caretaker Foreign Minister Ali Bagheri Kani and discussed the recent escalation of tensions in the region as well as bilateral relations.

Although having diplomatic ties, the relationship between Iran and Jordan has long been tense.

In March last year, Jordan welcomed the decision by Iran and Saudi Arabia to resume ties.

Haniyeh, who had been invited to attend Pezeshkian’s swearing-in ceremony on Tuesday, was killed along with his bodyguard early Wednesday when their residence in Tehran was hit, according to Iran’s Islamic Revolution Guards Corps, which said Israel had carried out the “terrorist attack” and vowed “a harsh and painful response”. AGENCIES

Iran’s Acting Foreign Minister Ali Bagheri Kani and Slovenian Foreign Minister Tanja Fajon exchanged views on the assassination of Hamas Politburo Chief Ismail Haniyeh over a phone call.

During their phone conversation, Bagheri Kani said that Iran would undoubtedly use its “legitimate and inherent” right to defend its security, sovereignty and territorial integrity to create deterrence against Israel’s “acts of aggression” and ensure security and stability in the region, Xinhua news agency reported.

Bagheri Kani highlighted the importance of Iran’s role in maintaining peace, stability and calm in the West Asia region and the necessity to stop the “genocide” by Israel in Gaza and condemned its “unlawful” actions, according to a statement released by the Iranian Foreign Ministry.

On her part, Fajon said that her country condemned any violation of international law.

She expressed hope that all parties would exercise self-restraint and take steps “wisely and tactfully” towards ensuring stability in the region.

Haniyeh, who was in the Iranian capital Tehran to attend the inauguration of Iran’s new President, was killed together with his bodyguard in an airstrike before Wednesday dawn when their residence in Tehran was hit, according to Iran’s Islamic Revolution Guards Corps, which said Israel had carried out the “terrorist attack” and vowed “a harsh and painful response.” AGENCIES

Iran’s Parliament Speaker Mohammad Baqer Qalibaf said on Sunday that the country’s response to the assassination of Hamas Politburo Chief Ismail Haniyeh will be “crushing and smart.”

The response would make Israel and its supporters regret their action, forcing them to revise their system of calculations to refrain from making another “mistake” detrimental to their own security and regional peace, said Qalibaf, who made the remarks at an open session of the Iranian Parliament, reports Xinhua news agency, quoting IRIB.

Meanwhile, Hossein Taeb, a senior advisor to the chief commander of Iran’s Islamic Revolution Guards Corps (IRGC), was quoted by IRIB as saying that the scenario designed to avenge Haniyeh’s assassination would be “new and surprising” and “unpredictable.”

Also on Sunday, Ebrahim Rezaei, spokesman of the Iranian Parliament’s National Security and Foreign Policy Committee, said Iran’s intelligence authorities had assured that the assassination of Haniyeh was not the result of “infiltration.”

Necessary measures regarding the “terrorist action” and completing the required data were being implemented, Rezaei was quoted as saying by the Iranian official news agency.

Haniyeh, who had been invited to attend the swearing-in ceremony of Iranian President Masoud Pezeshkian on Tuesday, was killed along with his bodyguard early Wednesday when their residence in Tehran was hit, according to the IRGC, which said Israel had carried out the attack and vowed “a harsh and painful response.”

Meanwhile, Iran’s Supreme Leader Ali Khamenei said Israel had prepared the ground for a “harsh punishment” for itself. AGENCIES

Iraqi Prime Minister Mohammed Shia al-Sudani said that de-escalation in the Middle East depends solely on halting the aggression in Gaza and preventing its expansion into Lebanon.

The Prime Minister made the remarks during a phone conversation with US Secretary of State Antony Blinken on Sunday, according to a statement issued by al-Sudani’s media office.

The two sides discussed the latest regional and international developments and efforts to prevent further escalation of tensions in the region, reports Xinhua news agency, citing the statement.

Al-Sudani stressed the need to deter Israeli Prime Minister Benjamin Netanyahu and his government from attacking regional countries and to put an end to their repeated violations of international law and sovereignty, the statement read.

On his part, Blinken expressed the United States’ desire for Iraq to play a role in maintaining regional stability and preventing escalation by all parties, it added. AGENCIES