Markets Look Steadier After Digesting Israeli Strikes, According to CNBC
Global markets appear to be stabilising after an initial reaction to Israel’s airstrikes on Iran, which sparked concerns over oil supply disruptions and prompted investors to seek safe-haven assets. According to a report by CNBC, the conflict between Israel and Iran has entered its fourth day, with both countries launching new attacks on Monday.
The airstrikes on Friday sent shockwaves through financial markets, causing oil prices to surge and gold prices to rise. The dollar also strengthened, as investors sought the perceived safety of US government bonds. However, as reported by CNBC, US futures ticked up on Monday, while the dollar index and gold prices dipped, suggesting that investors are now operating with a cooler head.
"The fact that the dollar increased in value against other currencies traditionally perceived as safe havens, such as the Swiss franc and Japanese yen, emphasises the primacy of king dollar, despite rumblings of de-dollarisation and concerns over US government debt," CNBC reported. The news organisation also noted that stocks, a financial risk asset, fell across markets globally, but US stocks still appear resilient.
In an interview with CNBC, Michael Santoli noted that despite the markets giving multiple indications that we are entering a period of volatility, US stocks still appear resilient. "U.S. stocks still look resilient," he said. "This week, while hostilities between the two Middle East countries will continue weighing on investors’ minds, they should not lose sight of the Federal Reserve’s rate-setting meeting, which concludes Wednesday."
The conflict between Israel and Iran has sparked concerns over oil supply disruptions, causing oil prices to surge. According to CNBC, US crude oil rose 1.23% to $73.88 a barrel, adding to its 7.26% jump on Friday. The global benchmark Brent climbed 0.94% to $74.96 a barrel, following Friday’s 7.02% surge.
In other news, China’s retail sales in May jumped 6.4% from a year earlier, data from the National Bureau of Statistics showed on Monday. This was above analyst expectations of 5%, according to a Reuters poll. Taiwan’s trade authority also added Huawei and SMIC, as well as a host of their subsidiaries, to its "Strategic High-Tech Commodities Entity List," effectively putting them on a trade blacklist.
As reported by CNBC, the CEOs of two major energy companies were hesitant to predict where oil prices could go. The news organisation also noted that demand for safe-haven assets, such as gold and the dollar, abated on Monday, with prices pulling back after investors piled into them following Israel’s attack on Iran on Friday.
The Boeing 787-9 civil jet airplane of Vietnam Airlines performs its flight display at the 51st Paris International Airshow in Le Bourget near Paris, France. (Photo by: aviation-images.com/Universal Images Group via Getty Images)
The situation in the Middle East remains volatile, with the conflict between Israel and Iran showing no signs of abating. However, according to CNBC, financial markets might find steady ground again, as they have largely shrugged off previous conflicts, such as Russia’s invasion of Ukraine and the Israel-Hamas war.
In conclusion, the markets appear to be stabilising after an initial reaction to Israel’s airstrikes on Iran. However, the situation in the Middle East remains volatile, and investors will be keeping a close eye on developments in the region. As reported by CNBC, the Federal Reserve’s rate-setting meeting, which concludes on Wednesday, will also be a key focus for investors this week.
