Global Markets on Edge
Are you feeling the market tension? You’re not alone. As the conflict between Israel and Iran stretches into its sixth day, investors everywhere are watching nervously. Global stocks have slipped, with many wondering if this could spark a wider regional crisis. This week is especially busy, with major central banks—including the U.S. Federal Reserve, Bank of England, and Swiss National Bank—set to make big decisions.
Wall Street: U.S. futures continued to slide after May’s retail sales fell more than expected, adding to the uncertainty.
Canada: The TSX futures barely budged, even as oil prices climbed. Investors are also digesting results from Groupe Dynamite Inc..
Europe: The STOXX 600 dropped 0.68%, Britain’s FTSE 100 fell 0.4%, Germany’s DAX lost 0.79%, and France’s CAC 40 slipped 0.66%.
Asia: Japan’s Nikkei bucked the trend, closing up 0.59%, while Hong Kong’s Hang Seng dipped 0.34%.
Oil Surges as Tensions Rise
Oil prices are on the move, and it’s all about the Middle East. The ongoing Israel-Iran conflict has pushed Brent crude up 2.1% to $74.79 a barrel, while West Texas Intermediate (WTI) rose nearly 2% to $73.19. Although major oil and gas infrastructure has avoided serious damage so far, the risk of disruption keeps traders on their toes.
Expert Insight: “The conflict between Iran and Israel is still fresh and brewing, and investor sentiments may still be holding on to the ‘war risks’,” says Priyanka Sachdeva, senior market analyst at Phillip Nova.
Other Commodities: Spot gold edged up 0.1% to $3,386.29 an ounce, while U.S. gold futures slipped 0.4% to $3,404.90. High-grade copper and WTI also saw modest moves.
Currency and Bond Moves
The Canadian dollar lost ground against the U.S. dollar, trading between 73.61 and 73.77 US cents early in the day. Despite this dip, the loonie is still up about 2.5% against the greenback over the past month. Meanwhile, the U.S. dollar index gained 0.24% to 98.23, the euro slipped 0.02% to $1.1560, and the British pound dropped 0.17% to $1.3553. U.S. 10-year Treasury yields also edged lower, last seen at 4.419%.
Central Banks in the Spotlight
Central banks are taking center stage this week. The Bank of Japan decided to keep interest rates steady and will slow its bond tapering, signaling a cautious approach as it unwinds years of stimulus. This move comes as global markets remain jittery over both geopolitical tensions and new U.S. tariffs.
Upcoming Data: Investors are watching for Canada’s international securities transactions, U.S. retail sales, trade price indexes, industrial production, and more. The Bank of Canada’s latest meeting summary and the start of the U.S. Fed meeting are also on the agenda.
What’s Next for Investors?
With so much happening, it’s no wonder investors are asking, “Should I really be holding on to these stocks now?” According to Chris Beauchamp, chief market analyst at IG, “Once the central bank parade is out of the way, then we might get a better sense of where they view things.” For now, staying informed and nimble is key.
Key Takeaways:
Global stocks are down as the Israel-Iran conflict escalates.
Oil prices surge, but major supply disruptions have not occurred yet.
Central banks are in focus, with decisions from the Fed, Bank of Japan, and others expected this week.
The Canadian dollar weakens, while gold and copper see mixed moves.
Stay tuned—this week promises more twists and turns for Canadian investors!
