Latest news with #geopoliticalTension
Bloomberg
3 days ago
- Business
- Bloomberg
Middle East War Reset Dollar's Inverse Link to Stocks, Goldman Says
This month's geopolitical tension focused on the Middle East is re-establishing the dollar's traditional inverse relationship with risk assets, according to Goldman Sachs Group Inc. The last eight trading sessions saw the greenback move in the opposite direction of the S&P 500 Index, in contrast to the positive link to risky assets seen amid the broader selling of US holdings after President Donald Trump launched his trade war earlier this year, Goldman strategists including Stuart Jenkins, Teresa Alves and Isabella Rosenberg wrote in a note Wednesday.
Yahoo
15-06-2025
- Business
- Yahoo
Egypt Leads Mideast Stock Losses as Israel-Iran Conflict Worsens
(Bloomberg) -- Most Middle Eastern markets dropped on Sunday as investors signaled growing concerns of a wider conflict amid tit-for-tat attacks by Israel and Iran. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Do World's Fairs Still Matter? Egypt's main stock index was the worst performer among markets that opened for the first time since the attack began on Friday, posting the biggest losses in five years at one point on concerns that a halt in Israeli gas production will lead to fuel shortages in the import-dependent country. Its currency weakened past the 50-per-dollar mark at local bank trades. Israel's equity benchmark erased losses as defense supplier Elbit Systems Ltd. rallied. In Saudi Arabia, the Tadawul gauge's declines were limited by Aramco, which gained on the back of higher oil prices. The escalation comes at a challenging time for Middle Eastern equities after they underperformed global markets so far this year, dragged by oil-price volatility, geopolitical uncertainty and fiscal strains in some countries including Saudi Arabia. The weekend's events have already dented hopes for a quick end to the hostilities and boosted demand for haven assets such as gold and the dollar. 'It is no surprise that with an open-ended Israel-Iran shooting war under way, that regional markets have been pounded too, as far as Egypt, which has seen gas supplies from Israel cut off,' said Hasnain Malik, a strategist at Tellimer in Dubai. 'The spike in oil price reflects the risk of Iranian exports going offline but not serious disruption to the Strait of Hormuz, through which 20% of global oil falls.' Israel and Iran continued to bombard each other for a third day, their long-standing enmity erupting into open conflict on the heels of hostilities in Gaza and Lebanon. It has already led to the cancellation of nuclear talks between Iran and the US and undermined cross-asset bets in the region predicated on a return of peace. Egypt's EGX 30 Index fell as much as 7.7%, before paring losses. All its 31 stocks posted declines, while the pound traded as weak as 50.6 units per dollar, according to local-bank quotes. Israel shut down production at its biggest natural gas field over the weekend, stopping supplies to Egypt. Israel's stock index rose 0.6%, erasing losses of as much as 1.5%, thanks to a jump in defense supplier Elbit. The maker of rockets, drones and aerial defense systems for Israel's army said last month it's betting on growing business in Europe as well. The Saudi market mostly joined the selloff as 243 of the benchmark index's 253 stocks posted losses. However, the impact was offset by gains for Saudi Aramco, which rose 1.2% on the back of Friday's surge in crude prices. Other markets across the region including Kuwait and Qatar retreated. Investors' key concern remains oil supply chains and prices. West Texas Intermediate crude futures advanced more than 7% to settle near $73 a barrel on Friday, for the biggest one-day jump since March 2022. 'In the most negative scenario of a complete disruption to Iranian oil supply and a closure of the strait of Hormuz, oil could rise to above $120 per barrel,' said George Saravelos, global head of FX strategy at Deutsche Bank AG. --With assistance from Galit Altstein, Omar Tamo and Tarek El-Tablawy. (Updates with Israel's stock index erasing losses.) American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom ©2025 Bloomberg L.P. Sign in to access your portfolio
Times of Oman
05-06-2025
- Business
- Times of Oman
Silver hits its highest level in 13-years on weaker USD and solid demand says experts
New Delhi: Silver prices on Thursday, crossed USD 35 mark per ounce and hit its highest level since March 2012, boosted by a combination of factors such as weaker US dollar, rising geopoltical tension and robust industrial demand. "With the trust in dollar decreasing silver appears to be a good avenue for money to move to and the Gold Silver ratio was recently above 1.10 so the only way forward was either silver prices rise up or gold prices fall, and thats what has happened silver has risen far more than gold," said Mrinesh Jain Director, Bombay Bullion Metal Hub LLP. The gold-silver ratio, which shows how many ounces of silver are equivalent to one ounce of gold, helps the market assess future trends by reflecting how silver is performing in comparison to its historical relationship with gold. As reported by Reuters, the dollar prices fell across the board after weaker-than-expected U.S. private payrolls numbers highlighted continued easing in the labor market and data showed the U.S. services sector contracted for the first time in about a year in May. Silver typically moves inversely to the US dollar, when the dollar strengthens, silver prices fall, and when it weakens, silver tends to rise. Additionally, Silver is vital in industries which used in electronics, solar panels, EVs, medical devices, water purification, catalysts, mirrors, and semiconductors due to due to its top electrical, thermal, and antibacterial properties. With rising demand from clean energy and advanced tech, silver is becoming increasingly important beyond traditional uses like jewelry and coins. This can be seen as one of the factors behind the rise. On the geopoltical front, in a significant move invoking national security concerns, US President Donald J. Trump has announced a visa ban for international students planning to begin studies at Harvard University. Trump has also signed an order which imposes travel restrictions on nationals from 19 countries to the US, citing national security risks, according to the White House. Silver gains on safe-haven demand during economic and geopolitical uncertainty, similar to gold. "While silver is well-positioned to test further highs--possibly reaching Rs 1,30,000 per kilogram later this year," said Ajay Kedia, director at Kedia Commodities, Mumbai. Adding, "silver continues to reflect the dual narrative of a monetary hedge and an industrial growth story."
South China Morning Post
27-05-2025
- Business
- South China Morning Post
Asean leaders sign Kuala Lumpur Declaration as Malaysian PM warns of ‘unsettled' international order
Asean's leaders signed the Kuala Lumpur Declaration – a blueprint to develop the region through to 2045 – during the first day of a two-day summit in the Malaysian capital on May 26, 2025.. At the launch of the declaration, Anwar warned that the international order was 'unsettled', with ties between nations fraying under the pressure of geopolitical tension, economic fragmentation, climate change and technological disruption.
