KSE-100 Index Drops Over 15,000 Points in Early Trading

Financial outlets describe the US-Iran war as the main driver of a broad risk-off move, pushing investors out of equities in markets seen as exposed to Middle East conflict and energy shocks. Commentators point to heavy foreign selling in India, pressure on European futures, and currency weakness such as the pound as signs that global funds are cutting risk quickly. Many expect continued volatility, especially in markets tied to oil flows, until there is clearer information on how far the fighting will go.

• •Foreign institutional investors are dumping Indian stocks, selling about Rs 11,000 crore in two days because of the US-Iran war.
• •European stock futures, including for the FTSE 100, are pricing in further losses as traders react to US-Iran strikes.
• •The British pound is under pressure as investors shift into perceived safe-haven assets during the conflict.
• •Global equity markets are treating the US-Iran war as a shock that justifies cutting exposure to emerging markets.
• •Market participants expect sharp swings in indexes and currencies until there is more clarity on the duration and scale of the fighting.