Global shares pulled back on Tuesday as early market optimism faded, giving way to investor caution regarding diplomatic efforts to resolve the war in Iran.
France's CAC 40 dipped 1.0 per cent in early trading to 8,313.86, while the German DAX fell 1.6 per cent to 24,746.63. Britain's FTSE 100 declined 0.6 per cent to 10,379.26.
US shares were set to drift lower with Dow futures down 0.7 per cent at 51,774.00. S&P 500 futures fell 1.5 per cent to 7,429.25.
Earlier in Asia, Japan's benchmark Nikkei 225 lost 3.6 per cent to finish at 69,788.38.
“We've had eight days of strong markets,” said Neil Newman, head of strategy at Astris Advisory Japan. “Now it has cooled off a bit.” Australia's S&P/ASX 200 was down 0.3 per cent at 8,787.00. South Korea's Kospi tumbled 10.0 per cent decline to 8,203.84, dropping from previous record highs due to a sell-off in major technology issues. Signs of greater regulatory scrutiny in the country's semiconductor sector also added to the hand-wringing.
Also read: US and Asian markets surge as Trump announces Iran peace deal
Hong Kong's Hang Seng slipped 1.8 per cent to 23,336.28, while the Shanghai Composite shed 1.4 per cent to 4,106.25.
In the oil market, prices fell following talks over the weekend between the United States and Iran on their war. US Vice President JD Vance said they created a “good foundation for a successful final deal.” An end to the war could open the Strait of Hormuz for oil tankers and allow for the full resumption of deliveries from the Persian Gulf. Iran's military said Saturday that it had closed the strait again, though US Central Command has disputed that.
On Tuesday, benchmark US crude fell 73 cents to USD 73.58 a barrel. Brent crude, the international standard, lost 43 cents to USD 77.47 a barrel.
In currency trading, the US dollar edged down to 161.43 Japanese yen from 161.52 yen. The euro cost USD 1.1407, down from USD 1.1431.
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