Stocks Settle Sharply Higher as Middle East Tensions Ease

• European stock markets are trending toward record highs as strong corporate earnings increase investor risk appetite. • Oil prices rose on Tuesday, recovering from a previous sell-off triggered by President Donald Trump's announcement of diplomatic talks with Iran.

• On Tuesday morning, India's benchmark indices diverged in a rare occurrence, with the BSE Sensex trading in the green while the Nifty50 slipped into the red. • Around 9:42 am, the BSE Sensex rose by 166.15 points (0.21%) to 78,805.18, whereas the Nifty50 dropped 159.25 points (0.64%) to 24,615.00.

• Asian technology stocks experienced a deepening sell-off following disappointing earnings reports from semiconductor giant SK Hynix. • The decline reflects investor concerns over the sustainability of the AI-driven rally and potential volatility in the global chip market.

• The Japanese yen surged up to 5% over three trading sessions following suspected currency interventions by US and Japanese authorities. • Traders are closely monitoring the market for further interventions to stabilize the currency pair against the US dollar.

• U.S. stock futures have trended higher following President Donald Trump's announcement that negotiations with Iran are set to begin on Monday. • The news comes amid a volatile cycle of threats and diplomatic pullbacks between the two nations, creating uncertainty in global markets.

• Asia-Pacific markets saw mixed early activity on August 4, 2026, with South Korea's Kospi opening 1.2% higher and Japan's Nikkei 225 rising 0.3%. • Tech giants drove initial gains in South Korea, with SK Hynix climbing over 3% and Samsung Electronics increasing by more than 2%.

• The upcoming week focuses on critical US labor market data, featuring the JOLTS report on Tuesday and the ADP employment survey on Wednesday. • Investors are primarily anticipating Friday's July employment report, which will provide essential insights into the health of the US economy.

• Today's Data Watch focuses on the Q1 financial results for major companies including DLF, Escorts Kubota, and GSK India. • The report also tracks critical economic indicators, specifically Germany's retail sales, the S&P Global Manufacturing PMI, and inflation data from Turkey.

• The Australian Securities Exchange (ASX) extended its gains following a positive rally on Wall Street. • Economist Louise Southall from Xero noted surprising Australian Bureau of Statistics (ABS) data showing discretionary spending grew at a faster rate than spending on essential items.

• The Nifty 50 index experienced a chaotic start to its weekly options expiry session due to irregularities in the Closing Auction Session for stocks with Futures & Options contracts. • Technical glitches caused the index to spike by 200 points in a single tick, creating a divergence of over 100 points between spot and futures prices.

• Indian equity markets are expected to open flat or mildly negative, with Gift Nifty trading around 24,650, down by 14 points. • Market sentiment has been bolstered by a combination of lower crude oil prices, easing geopolitical tensions, and sustained inflows from foreign funds.