Global equity markets faced broad-based selling on October 8 as investors reacted to rising crude oil prices, elevated bond yields, renewed inflation concerns and growing geopolitical risks in the Middle East.

The Nifty 50 declined 1.6 percent to touch a 52 week low, but the weakness was not limited to Indian equities. Japan’s Nikkei and Hong Kong’s Hang Seng fell 1.4 percent each, while China’s CSI 300 declined 1.1 percent. European markets also remained under pressure, with Germany’s DAX falling 1.1 percent and France’s CAC 40 declining 0.7 percent.

US equities followed the broader global trend. The Dow Jones Industrial Average, S&P 500 and Nasdaq declined 0.4 percent, 0.4 percent and 0.5 percent, respectively, as investors assessed the implications of persistent inflation risks and tighter financial conditions.

Rising concerns over the future path of interest rates have added to market uncertainty. Investors are increasingly considering the possibility that the US Federal Reserve could raise interest rates again before the end of the year. Meanwhile, renewed inflation warnings from European Central Bank policymakers have increased uncertainty around monetary policy in Europe.

Global bond markets have also faced pressure from higher yields. Rising US Treasury yields have supported the US dollar, while the euro remained near a 17 month low amid concerns over France’s fiscal position. Wider French bond spreads have also affected sentiment in Italian and Greek debt markets, with parts of the European banking sector coming under pressure.

Crude oil has emerged as another major source of risk for global markets. Brent crude rose 1.52 percent to $101.73 a barrel, while West Texas Intermediate gained 1.4 percent to $89.50. The increase followed renewed concerns over oil supply routes in West Asia after attacks on shipping in the Gulf.

Concerns over the Strait of Hormuz have further intensified market uncertainty. The waterway is a critical route for global oil shipments, and attacks on tankers passing through the region have raised fears of potential disruptions to energy supplies.

Geopolitical risks have also increased following reports that US President Donald Trump instructed the military to prepare for potential action against Iran, although the timing of any military operation remains uncertain. The possibility of further escalation has added to concerns over oil supply and global inflation.

The combination of higher energy prices, elevated bond yields and geopolitical uncertainty has therefore created a challenging backdrop for equities. The broad-based nature of the sell-off suggests that investor concerns are extending beyond individual markets, with global risk appetite being affected by the interaction between energy prices, inflation and monetary policy.