Stock Market crash explained: KOSPI fall, F&O expiry among key triggers

• Global bond markets continued a "highest since" trend yesterday, characterized by rising yields and shifting price actions. • Energy prices surged further, driven primarily by a new intensification of the conflict involving Iran.

• The Federal Reserve implemented "Operation Twist," a strategy involving the sale of short-term bills and the purchase of long-term Treasuries to stabilize the economy. • To support the dollar and encourage investment, the Treasury utilized "Roosa bonds," which were sold to foreign central banks to protect against currency devaluation.

• Global interest rates are surging, with the U.S. 10-year Treasury note climbing to nearly 4.8 percent. • Significant shifts are occurring internationally, including the Japanese 10-year bond exceeding 3 percent for the first time since 1996 and the German 10-year bund hitting 3.33 percent, a peak not seen since 2011.

• Indian stock markets experienced a sharp decline today, with the Sensex dropping nearly 700 points and the Nifty plummeting 200 points within the opening minute of trade. • The market volatility is driven by an escalation in the conflict between Iran and the United States, which has caused Brent crude oil prices to skyrocket.

• Eurozone inflation rose sharply to 3.3% in August, driven primarily by a surge in energy prices which climbed more than 14% year-on-year. • National rates varied across the region, with Spain recording the highest inflation at 4.5%, followed by Italy at 3.2%.

• Three additional companies are preparing to leave the London Stock Exchange following a series of takeover offers. • This trend follows a broader wave of mergers and acquisitions that are removing firms from the capital's under-pressure stock market.

• Indian stock markets (Sensex and Nifty 50) are expected to decline on September 2, 2026, as rising oil prices driven by the widening conflict in Iran create economic pressure. • HSBC has entered a competitive bidding war against six global private equity firms to acquire a controlling 54% stake in Nuvama Wealth and Investment.

• The Nifty index declined on Monday, driven by negative market sentiment stemming from rising crude oil prices and geopolitical tensions. • Market activity saw a divergence in trading patterns, with foreign investors selling shares while domestic institutional investors continued to buy.

• The EUR/USD currency pair struggled to attract buyers on Tuesday, trading around 1.1601 after hitting an intraday low of 1.1587. • Despite the release of softer-than-expected US economic data, the US Dollar remained resilient and showed little weakness.

• Markets were buoyed this week by strong tech earnings, which helped offset investor caution regarding inflation and provide relief against oil price volatility. • The July personal consumption expenditures (PCE) report, released Wednesday, showed headline inflation was slightly firmer than expected, while core figures remained in line with forecasts.

• US big tech companies are increasingly tapping the euro area bond market, issuing debt with significantly longer-dated maturities than other economic sectors. • This trend helps build the long end of the yield curve, providing a financial structure that domestic corporate issuers in Europe use less frequently.

• The EUR/USD pair maintained modest gains on Monday as the US Dollar failed to build on strength gained from hawkish remarks by Fed Chair Kevin Warsh at the Jackson Hole Symposium. • Despite current Euro gains, the US Dollar remains supported by elevated Treasury yields, geopolitical tensions, and expectations of a hawkish Federal Reserve.