Although Diwali has not yet arrived, the stock market today shows signs of a holiday, supported by signals from international markets. One of the key factors is the sharp drop in global crude oil prices. This occurred after Donald Trump's party suffered a crushing defeat in the US midterm elections, which triggered the collapse in crude oil prices.
The significant decline in oil prices, which had long negatively affected sentiment in stock markets worldwide, may lead to a strong rise on the exchange. Before the oil price drop, there was a decline, and after it became clear that Trump's party had lost, Brent Crude Oil prices fell sharply by approximately 10 percent. At the time of writing, the Brent Crude price was below $90 per barrel. The fall in oil prices reduces the threat of inflation, and media and social networks also report that the war between the US and Iran is ending.
The main reason for the expected surge in the stock market is the collapse in crude oil prices. Even before the results of the US midterm elections were announced, oil prices were declining, and after the defeat of Trump's party was confirmed, Brent Crude Oil prices suddenly dropped by almost 10 percent. At the time of publication, the Brent Crude Price traded below $90 per barrel. The decrease in oil prices helps reduce the risk of inflation, and media and social network reports indicate the end of the war between the US and Iran.
Thanks to Donald Trump's defeat in the American midterm elections and the significant drop in crude oil prices, the mood in global stock markets has improved. The American stock market is seeing growth, with the Dow Jones index rising by 3 percent, the largest jump in the last 18 months. Furthermore, most Asian markets opened with strong gains on Thursday. The Hong Kong Hang Seng Index rose by approximately 4 percent, and the UK FTSE-100 index traded with a gain of 2 percent.
Gift Nifty, considered a key indicator for the Indian stock market, shows continuous growth. During the events in America on Thursday, this index demonstrated a powerful start and, at the time of writing, was up an impressive 324 points. The rise of Gift Nifty and the fall in crude oil prices will support the upward trend in the Indian stock market, which has been continuing for the fifth day. In the previous trading day, Wednesday, the Sensex index closed at 77,301.40, showing an increase of 383.55 points, and the NSE Nifty closed at 23,960, increasing by 149.75 points.
