Just now, the entire market plummeted! Urgent market rescue!

【Introduction】Global Markets in Turmoil

Hello everyone, continuing to monitor the impact of the Iran situation on global markets.

European and American Stock Markets Plunge Across the Board

After the close of the A-shares on March 2, European stock markets plummeted across the board, with France, Germany, the Euro Stoxx 50 index, Italy, and the three major U.S. stock index futures all falling about 2%.

Barclays Bank strategists warned against rushing to buy on dips. Investors have become accustomed to quick resolutions of geopolitical conflicts, but this time, there is a risk of a longer-lasting crisis.

The strategists said, “The risk-reward ratio doesn’t look attractive. If the stock market pulls back enough (for example, the S&P 500 drops more than 10%), it might be a good buying opportunity. But now is not the time.”

Any prolonged surge in oil prices will also complicate the movement of U.S. Treasuries. While market risk aversion tends to lower yields, rising energy prices will ripple through the economy and push inflation higher, which in turn could increase yields.

The long-term instability in the Middle East and the chain reaction of rising oil prices provide fund managers with new reasons to sell stocks and shift to safe-haven assets. Valuations in global stock and credit markets are high, making it easier for investors to cut risk positions.

India, Indonesia, and Turkey Emergency Market Interventions

On March 2, due to the Iran conflict, Indonesia and India intervened in currency markets to support their currencies!

Erwin Hutapea, Director of Currency and Securities Asset Management at Indonesia’s central bank, stated in a Monday release that the bank will continue to intervene in both onshore and offshore spot and swap (NDF) markets.

According to traders in Mumbai, the Reserve Bank of India is conducting small-scale interventions to support the rupee.

Hutapea said, “The Bank of Indonesia will continue to closely monitor market developments and respond appropriately, including ensuring the rupiah’s exchange rate aligns with its fundamentals.”

As the U.S.-Israel conflict with Iran triggered a surge in oil prices, Asian currencies fell against the dollar on Monday. Most economies in the region are net fuel importers, and rising oil prices threaten to increase import costs and exacerbate inflation pressures.

On Monday, the Indonesian rupiah briefly fell 0.5% to 16,855 against the dollar, the largest decline since January 29. The Indian rupee also fell 0.5%, the largest drop since February 6.

Additionally, Turkey’s stock market opened sharply lower on Monday.

Turkish officials announced a series of measures covering the foreign exchange market, stocks, and funds to protect investors from volatility.

The Capital Markets Board announced a temporary ban on short selling stocks until March 6, and lowered the minimum equity capital requirement from 35% to 20%. The short-selling ban prevents investors from betting on further declines, while lowering the capital threshold relaxes margin requirements, allowing traders to maintain leveraged positions with less equity.

The Istanbul Stock Exchange also reduced the order-to-trade ratio from 5:1 to 3:1, tightening the limit on the number of orders participants can submit relative to executed trades. This move aims to curb order entry and cancellations, impacting high-frequency and algorithmic trading strategies.