Indian Shares Set To Extend Losses Amid Oil Price Surge

(RTTNews) - Indian shares look set to open lower on Friday, extending losses from the previous two sessions as the Strait of Hormuz remained effectively closed and peace negotiations dragged on.

U.S. President Donald Trump said the United States is not rushing to resolve the conflict with Iran, describing Iran's leadership as being in turmoil.

Benchmark indexes Sensex and Nifty fell by 1.1 percent and 0.8 percent, respectively on Thursday to extend losses for a second consecutive session, with rising crude oil prices and rupee weakness amid stalled U.S.-Iran talks weighing on markets.

The rupee settled 34 paise lower at 94.12 against the dollar, breaching the 94 level for the first time and extending declines for a fourth day running, following RBI's decision to remove curbs on foreign exchange trade.

Foreign investors net sold Indian equities worth Rs 3,255 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs 941 crore, according to provisional exchange data.

U.S. equity futures were mixed despite chipmaker Intel delivering strong earnings.

Asian markets were broadly lower this morning, even as regional losses remained capped somewhat after Israel and Lebanon have agreed to extend their ceasefire by three weeks following a meeting in the White House with top U.S. officials.

The dollar was set for its first weekly rise in three weeks while gold was little changed at $4,688 an ounce after declining in the previous session.

Brent crude futures climbed above $106 a barrel, extending gains for a fifth consecutive session, marking the longest rally since January on heightened fears of prolonged supply disruptions in the Persian Gulf.

Overnight, U.S. stocks backed down from record closing highs as Iran showed off its control over the Strait of Hormuz with a video of its commandos storming a cargo ship and activated defense systems in parts of Tehran, following reports of hostile aerial activity.

Media reports suggested that Iranian Parliament Speaker Mohammad Bagher Ghalibaf has resigned from U.S. negotiations, signaling a shift toward hardline unity.

Adding to uncertainty about the potential for a second round of peace talks, President Trump said he has ordered the Navy to "shoot and kill any boat" that is putting mines in the waters of the Strait of Hormuz.

Earlier, U.S. forces boarded a supertanker carrying Iranian oil in the Indian Ocean. Mixed earnings also weighed on markets, with American Airlines, Honeywell and IBM providing disappointing guidance.

In economic news, initial jobless claims revealed a slightly uptick last week while a measure of U.S. business activity hit a three-month high in April.

The tech-heavy Nasdaq Composite fell 0.9 percent while the S&P 500 and the Dow both dipped by 0.4 percent.

European stocks ended mixed on Thursday as investors reacted to ongoing tensions around the Strait of Hormuz and a mixed bag of corporate earnings.

The pan-European STOXX 600 finished marginally higher as the latest Eurozone PMI data signaled slowing activity alongside rising prices.

While the German DAX and the U.K.'s FTSE 100 both ended about 0.2 percent lower, France's CAC 40 gained 0.9 percent on strong earnings.

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