Singapore (Reuters) -Global Shares Slipped on Monday While Oil Prices Briefly hit Five -Month Highs and the Dollar Firmed As the World Held It Breath to SEE IF IR IR IR IR IRAN RETALATE AGAINST US ATTACKS ON ITS NUCLEAR SITES.
Market Reaction to the Weekend Scale of the Conflict In the Middle East Has Been Subded So Far As Investors Remain in Wait-See Mode.
Here are comments from Market Analysts:
“The Price Action in Response to the Scale Middle East Conflict Has Been Muted So Far As Markets Wait and See How Iran Responds. Judging by the Small Fall in Fomc Cut Pricing by Year-End, There are more Worries About The Positive Impact of the Middle East Conflict Than The Negative Economic Impact. The Currency Markets will be at the mercy of comments and acts from the Iranian, Israeli and US Governments.
“Markets appear to be treating the us strikes on iran as contained event for now, rather than the start of a broader war.
“Markets May Be Responding Not to the Scale Itself, But to the Perception That Could Reduce Lonar-Term Uncerty. If Iran’s Nuclear Capabilities Are Meaningfully Set Back, Some Investors May Interpret That AS The De-Scale In Disgise-The Geopolitical Risk Removed, Rather than added.
“That Said, Any Sign of Iranian Retaliation or Threat to the Strait of Hormuz Could Quickly Shift Sentiment and Force Markets to Reprice Geopolitical Risk More Aggressivery.”
“The Market Reaction to Weekend Developments has Been Muted to State The Least. The Price Action This will be a short-Lived Conflict, that climbing Will Ultimately Lead to De-Scalação.”
“On Monday, In Light of Weekend Geopolitical Risk Events in the Middle East, Market Participants Adopted A Wait-See Stance. Although the Market Initially Antipidated to Bull-Flattening of the JGB Following Last Week’s UNEXPERTEDLY LARGE REDUCTION IN 20-YEAR BOND ISSUANCE, MUTED MOVEMENTS IN US INTERNET RATES, COMBINED WITH SHIFT IN SENTEMENT TOWARD DOLLAR BUYING RATHER THAN SELLING, MADE IT CHALLENGING FOR INVESTS TO TAKE DECISION POSITIONS. “
