![]() consumers’ year-ahead inflation expectations rose sharply in early October, driving a steep deterioration in Americans’ views of their finances as well as sentiment. Traders also waded through the latest economic data and comments from central bank officials for clues on the policy outlook. “The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships.” “This may be the most dangerous time the world has seen in decades,” the JPMorgan chief executive officer said in the bank’s third-quarter earnings statement. Jamie Dimon warned of serious geopolitical risks as Israel prepared for a ground assault on Gaza. “This comes as borrowing costs have skyrocketed across the developed economies.” “The renewed rise in oil prices today, if sustained, could stoke inflationary worries further and make stagflation even worse for oil-importing countries in the Eurozone, Japan and China, among others,” Razaqzada noted. ![]() Investors should get at least “some insurance against a sudden drop in the stock market between now and the end of the year,” he noted.Ī sustained rise in oil prices will hurt the global economy even more, and this is clearly not good for stock markets with already-high valuations, according to Fawad Razaqzada, market analyst at City Index and. “The situation in Israel is a horrible one, and if it spreads into a regional conflict, the human costs will rise exponentially, and the financial costs around the globe will begin to rise very, very quickly as well,” said Matt Maley, chief market strategist at Miller Tabak + Co. In that scenario, Bloomberg Economics estimates oil prices could soar to $150 and global growth drop to 1.7 per cent - a recession that takes about $1 trillion off world output. and the European Union have designated a terrorist group. West Texas Intermediate crude topped US$87 a barrel.Ī sharper escalation of the conflict in the Middle East could bring Israel into a direct clash with Iran, a supplier of arms and money to Hamas, which the U.S. Treasury 30-year yields dropped nine basis points to 4.76 per cent, unwinding part of the previous session’s surge. sank after saying it’s investigating quality issues affecting the 737 Max aircraft. Oil rallied.īig tech sold off, with the Nasdaq 100 down over 1 per cent. Stocks fell and bonds rose as signs Israel is preparing for a ground invasion of Gaza left traders looking for safety ahead of the weekend.
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