Global markets saw a slight rebound today following the recent tensions between Iran and Israel that threatened to disrupt the fragile economic stability. European stocks and US equity index futures experienced gains, while oil prices dropped on speculation that the conflict would not escalate further.
President Biden reportedly assured Israeli Prime Minister that the US would not support a counterattack, easing some fears in the market. However, investors remain on edge due to concerns of inflation and higher interest rates, injecting fresh volatility into the markets.
Analysts are closely monitoring the situation, predicting that oil prices could surpass $100 a barrel if the conflict expands. Meanwhile, attention is shifting to Wall Street’s earnings season and key economic data releases scheduled for this week.
In addition, aluminum and nickel prices surged following US and UK sanctions against Russian supplies, impacting the commodities market. Shares in Asia slipped due to geopolitical risks, bank earnings, and the looming prospect of higher interest rates from the Federal Reserve.
Key events to watch this week include Eurozone industrial production, US retail sales, and business inventories on Monday, as well as the IMF and World Bank spring meetings in Washington. China, UK, Australia, Japan, and India are all expected to release important economic data throughout the week.
Market movements showed Stoxx Europe 600 rising 0.3%, S&P 500 futures up 0.6%, Nasdaq 100 futures up 0.6%. In currency markets, the euro rose 0.1% while the Japanese yen fell 0.5%. Cryptocurrencies also experienced gains, with Bitcoin rising 4% and Ether rising 5.4%.
Bonds saw yields on 10-year Treasuries advancing three basis points to 4.55%, and commodity prices fluctuated with Brent crude falling 0.6% to $89.88 a barrel while spot gold rose 0.4% to $2,354.20 an ounce.
Overall, markets remain on edge as investors brace for potential further volatility and keep a close eye on geopolitical developments and economic data releases throughout the week.
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