Global markets are experiencing their third consecutive weekly decline, driven by escalating tensions in the Middle East. Reports of explosions in Iran have heightened concerns, leading to significant losses across major world benchmark indices.
Safe-Haven Assets Surge
Amidst prevailing risk aversion sentiment, investors are turning to safe-haven assets such as gold, silver, government bonds, and the US dollar. The Japanese Yen and the Swiss Franc have also witnessed substantial spikes as investors seek refuge. Additionally, crude oil prices surged over 3%, with Brent futures surpassing $90 per barrel following the recent attack.
European Market Performance
European markets are extending losses for the third consecutive week, with major indices recording declines. The technology sector suffered broad losses, driven by disappointing earnings from ASML and lackluster sales growth reported by LVMH. However, utilities and real estate stocks showcased resilience, supported by hints of a potential rate cut by the European Central Bank.
Wall Street Trends
In the US, benchmark indices extended their decline amid indications of “higher-for-longer” interest rates by the Federal Reserve. The technology sector led losses in the S&P 500, with semiconductor stocks witnessing significant declines following ASML’s disappointing earnings report. Tesla’s stocks also plummeted after announcing a global headcount cut.
Asian Market Dynamics
Asian markets experienced losses for the week, with significant downturns seen in major economies like Japan. However, Chinese mainland stock markets exhibited resilience, outperforming global counterparts in response to upbeat first-quarter GDP data. Recent economic indicators suggest a strengthening of China’s economic recovery, prompting revisions to growth projections by financial institutions like Morgan Stanley.
SOURCE: Ref Image from Forbes
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