The morning session commences with a relatively subdued tone across major markets, as investors digest continued geopolitical tensions, particularly regarding the Middle East, while anticipating fresh economic catalysts. Indian equities are making headlines, but the immediate focus for global markets remains on the resilience shown by US equity futures. Gold continues to hover near elevated levels, supported by its safe-haven appeal amidst ongoing global uncertainties, even as oil prices saw a recent pullback from their peaks following reports of a fragile ceasefire. The slight rebound in Brent and WTI crude indicates some stabilization, though underlying bearish sentiment persists due to supply/demand dynamics and easing immediate fears. Forex markets see the US Dollar holding steady after a period of weakness, influenced by 'Fed-White House feud' concerns, while crypto markets show mixed signals, with Bitcoin seeing a modest rise and Ethereum a slight dip, reflecting their inherent volatility and correlation with broader risk assets.

With no high-impact economic releases scheduled for May 12, 2026, the primary risks in the next 12-24 hours stem from geopolitical developments, particularly any escalations or de-escalations in the Iran-Israel tensions. Unexpected corporate news or shifts in central bank rhetoric could also introduce volatility. The quiet economic calendar places a greater emphasis on market sentiment and technical drivers.