“Financial markets have reacted adversely to the escalation in the Middle East conflict. Equity indexes have declined; core government bond yields and volatility measures have moved higher; and energy markets have repriced sharply, with pronounced price increases in both oil and gas. The US dollar (USD) has appreciated against its major trading partners. In contrast, gold, despite its traditional safe-haven status, has retraced, likely reflecting the offsetting impact of higher real yields and broad USD strength. In emerging markets (EM), indexes have traded lower, but moves have been muted. Surprisingly, inflows to global EM debt funds persist, with both EM hard currency (HC) and local currency (LC) debt funds recording stronger inflows despite the ongoing risk-off sentiment.” Læs hele analysen her.
Morten W. Langer
