[ad_1]
Global financial markets already rattled by elevated interest rates now face a fresh dose of geopolitical uncertainty following Hamas’s surprise attack on Israel.
Saturday’s strike and Israel’s subsequent declaration of war risk unnerving markets when they reopen on Monday, with investors eyeing the reaction of the oil price as a guidepost, although crude traders aren’t anticipating an outsized surge.
Sentiment toward stocks could take a hit, with IG’s Weekend Wall Street contract down about 0.4% at noon on Sunday in London. Bond traders will need to quickly determine if the clash is a reason to rush for the safety of the dollar, shunning higher yielding-debt, or to fear yet another bout of inflation.
The fallout in markets will likely be determined by whether conflict spreads to the rest of the Middle East region. Iran is both a major oil producer and supporter of Hamas.
Saturday’s strike and Israel’s subsequent declaration of war risk unnerving markets when they reopen on Monday, with investors eyeing the reaction of the oil price as a guidepost, although crude traders aren’t anticipating an outsized surge.
Sentiment toward stocks could take a hit, with IG’s Weekend Wall Street contract down about 0.4% at noon on Sunday in London. Bond traders will need to quickly determine if the clash is a reason to rush for the safety of the dollar, shunning higher yielding-debt, or to fear yet another bout of inflation.
The fallout in markets will likely be determined by whether conflict spreads to the rest of the Middle East region. Iran is both a major oil producer and supporter of Hamas.
#eyes #oil #geopolitical #risk
