Markets Calmer After Israel-Gaza Conflict, But Further Escalation Could Renew Volatility
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Recent risk-off moves in markets have abated, but what happens next depends on whether the Israel-Hamas war is contained or escalates.
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Safe haven assets like gold have risen, but Treasuries have not performed their usual safe haven role despite falling yields.
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Persistence of market moves depends on fears of escalation and impact on oil supply.
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Absent wider regional conflict, impact on global markets should ebb and focus will return to economic fundamentals.
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Against uncertainty, quality bonds remain attractive with moderating growth and inflation outlook.