Safe havens in demand
“After the strong end to the week for stocks on Friday, which had rallied in the wake of the impressive US payrolls report, the week in Asia began with losses for equities. Safe havens such as Treasuries and gold were in demand, while oil prices surged following the outbreak of conflict in the Middle East. As we saw following the start of the Russo-Ukrainian war, the focus will now be on attempting to assess the ramifications of the conflict, and whether it will widen to include other states.”
Oil prices higher while futures fall back
“Oil prices will be under the spotlight, with supply disruption fears providing a reason for Brent and WTI to rally. However, a repeat of the 1973 oil price spike seems unlikely, given the diminished role of OPEC and a changed diplomatic landscape. US and European futures point to a weaker open, though how much of this is down to profit taking from Friday’s surge is hard to say. A risk-off mood could well prevail for the time being, at least until the scope of the conflict becomes clearer.”
