U.S. Soybean Shipments to China Gain Momentum as Trade Tensions Ease 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Japan’s Service Sector Sustains Growth Momentum in November 
Dollar Slips as Weak U.S. Manufacturing Data Increases Pressure for Fed Rate Cuts 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
U.S. May Withhold $30.4 Million From Minnesota Over Improper Commercial Driver Licenses 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Oil Prices Rise as Geopolitical Tensions and Supply Risks Intensify 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
South Korea Posts Stronger-Than-Expected 1.3% Economic Growth in Q3 
U.S. Cyber Monday Online Sales Surge Past $9.1 Billion as Holiday Shopping Momentum Builds 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Trump Administration Plans Major Rollback of Biden-Era Fuel Economy Standards 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Rising tensions in the Middle East have dampened investor confidence, triggering concerns about the impact on riskier assets, including the high-valued U.S. stock market. The uncertainty comes after reports of escalating conflict involving Iran-backed Hezbollah and Israel. Israel warned of serious consequences if the situation deteriorates further.
Market Sees Volatility; Investors Turn to Safe-Havens
The S&P 500 fell as much as 1.4% before closing down 0.9%, while the Nasdaq Composite dropped as much as 2.3%, ultimately ending 1.5% lower. In contrast, demand surged for traditional safe-haven assets, such as gold, U.S. Treasuries, and the dollar.
The market's response is reminiscent of past geopolitical events, like Russia’s 2022 invasion of Ukraine, which triggered sharp but brief market moves as investors quickly fled to safer assets. This time, market dynamics will depend on how the conflict develops and whether Israel's response leads to an escalation. “The market ... is highly sensitive to any scenario worse than this,” said Hasnain Malik, head of emerging and frontier markets equity strategy at Tellimer.
Oil Prices Surge, Adding to Investor Worries
One specific concern for investors is the jump in oil prices, with fears that the conflict could disrupt crude oil supplies from the Gulf region, leading to price spikes. Quincy Krosby, chief global strategist for LPL Financial, noted that heightened conflict in the region could potentially drive oil prices sharply higher.
“If the situation escalates, that of course is not good for markets,” warned Allan Small, senior investment adviser at iA Private Wealth in Toronto.
Upcoming Catalysts Keep Investors on Edge
Beyond the Middle East tensions, markets are bracing for potential volatility driven by domestic factors, including the upcoming U.S. election and a critical jobs report this week that will shape the Federal Reserve's monetary policy. The Cboe Volatility Index, which measures market swings, reached a three-week high of 20.73 before settling at 19.25, reflecting investor caution.
“Markets are likely to display high sensitivity to geopolitical news flow in the coming hours,” said Michael Brown, senior research strategist at Pepperstone.
