After Chinese Real Estate worries and Yields Spike in US, Another geo-political risk that got escalated on 07th Oct 2023, is set to create worries for Equity and Stock Market – Israel and Palestinian group Hamas conflict extending into a War which is seeking international attention.
Will world’s markets sink more?
To start with, Middle East markets (Riyadh-Saudi, Cairo, Doha, Kuwait, Qatar) is setting the bearish tone for stocks and equities while for Gold and Oil, prices are expected to elevate further. The tensions are so grave that Israel is using its most popular Air Defense system – Iron Dome to protect its populist and areas that are critical from defense point of view
Reading starting impact on Middle East Stock Markets-
The benchmark index of Israel (TA-35) is trading with highest loss in 3-years.
The benchmark index of Riyadh, Saudi Arabia – Tadawul (TASI) closed down by 1.57%.
Eqypt’s EGX30 closed down by 2.6%.
Beruit’s Stock Exchange Index (BLOM) is also set to open lower after Lebanon entered into the war by its support to Hamas and attacks to Israel.
International communities response to this war is increasing while oil traders are looking at Iran – the major oil producer that backs the Hamas Group.
Iran’s Tehran had already threatened to shut the 167 kms long shipping artery of great importance – Strait of Hormuz that is located between Oman and Iran, this is a strategic chokepoint connecting the Persian Gulf and Gulf of Oman, through which an estimated 20 to 30 percent of the world’s total oil consumption is transited.
World is divided for Israel – Hamas conflict:
The major worry for lingering of this conflict is the division of world who support or favor the parties of the conflict. The great economies or say developed nations such as US, France, Entire European Region, Germany, Britain, Italy, Poland, Japan and also India are in favor of Israel while most of the Islamic nations such as Iran, Turkie, Pakistan, Yamen, Indonesia, Kuwait stands for Palestine, Hamas.
What to watch out for Stock markets in India , Europe and US:
The prices of Oil and Gold are going to drive the market trend for at least this 41st week of October (01-14). Oil prices are set to rise higher leaving their push-impact on inflation which is already an head-ache for the markets in these geographies.