Last week’s key market movers:
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Middle East escalation (US–Iran conflict) drove sharp oil price spike above USD100/bbl and broad risk‑off sentiment;
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Energy shock and stagflation fears as crude surged; disruption to traffic in Hormuz is expected to last;
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Weak US labour data (unexpected job losses) raises concerns about growth while inflation risks remain elevated;
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Equity sell-off and sector divergence: major global equity indices fell while energy and defense stocks outperformed. EU stocks suffered the worst hit amid higher energy dependence.
Looking ahead:
- Iran military conflict (During the week): Expected to be the focus of markets’ attention during the week as uncertainty will remain extremely high. Markets are turning more pessimistic and odds of a prolonged war are fast increasing. Iran’s appointed new supreme leader Khamenei’s son signals that Iran will not back down.