Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
As tensions escalate between Israel and Iran, investors are bracing for potential U.S. military involvement and its economic ripple effects. Markets are watching closely as the Trump administration considers joining Israel’s bombing campaign amid ongoing missile exchanges. The recent deployment of B-2 bombers to Guam—capable of targeting Iran’s underground nuclear sites—has fueled speculation, although the move's direct link to the conflict remains unclear.
Energy markets have already reacted. West Texas Intermediate (WTI) crude prices are up 10% this week, while Brent crude hit a five-month high. Analysts warn that a strike disrupting Iranian oil output or closing the Strait of Hormuz could push oil to $130 per barrel, potentially driving U.S. inflation to 6% and eliminating chances for rate cuts in 2025.
Stock markets have remained relatively stable, with the S&P 500 largely unchanged since Israel's initial attacks. However, further escalation could trigger a risk-off sentiment, with potential equity selloffs and a temporary dollar rally due to safe-haven demand. Economists also highlight the risk to global growth already pressured by tariffs and inflation.
Historically, geopolitical shocks have led to short-term stock declines followed by recovery. The S&P 500 fell an average of 0.3% in the three weeks following past Middle East conflicts but rose 2.3% two months later. The dollar may strengthen initially but could weaken long-term if prolonged military engagement triggers nation-building efforts similar to those after 9/11.
As oil volatility surges and investor anxiety grows, markets are increasingly focused on whether—and when—the U.S. will act. A direct intervention could significantly shift global financial dynamics, impacting inflation, interest rates, and broader market sentiment.
