Geopolitics has evolved from a background risk factor to the primary driver of market behavior. The conflict in the Middle East and in particular the disruptions around the Strait of Hormuz have led to a significant energy risk premium in the markets.
It’s not just about oil. It is a global supply shock with implications for inflation, growth and financial conditions. Markets are currently very sensitive to headlines and the sharp swings in prices of stocks, bonds, currencies and commodities reflect this uncertainty.
At the same time, financial policy developments continue to be the focus. Increased national debt, increased defense spending and industrial policy initiatives continue to influence bond markets and long-term interest rate expectations. Cooperation between financial and monetary policy is playing an increasingly important role.
DISCLAIMER
CFDs are complex instruments and carry a high risk of losing money quickly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford the high risk of losing money. Past performance is no guarantee of future results. Professional customers can lose more than they deposit.
THIS MATERIAL MUST BE CONSIDERED AS MARKETING COMMUNICATIONS AND MUST NOT BE INTERPRETED AS INVESTMENT ANALYSIS OR INVESTMENT RECOMMENDATION.
The content of this communication has been prepared for informational purposes only and should be viewed as such. This communication does not constitute investment analysis in accordance with legal requirements aimed at promoting the independence of investment research. While the information in this communication or the information upon which it is based has been obtained from sources Capital.com believes to be reliable and accurate, it has not been independently verified. No guarantee or warranty, express or implied, is made as to the accuracy or completeness of any information provided by third parties.
The information provided at the time of this communication is subject to change without notice. It does not take into account the individual circumstances or objectives of investors and should not be construed as specific advice on the suitability of an investment decision. Investors should consider this report only as one factor in making investment decisions. To the extent permitted by law, neither Capital.com nor its employees or affiliates assume any liability for any direct or indirect damages arising directly or indirectly from the use of this communication or its contents. Any person acting on the basis of this information does so entirely at his or her own risk.
Capital Com SV Investments Limited (“CCSV”) is registered in Cyprus with company registration number HE354252. CCSV is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 319/17.
Capital Com is a pure execution service provider. The material provided in this article is for informational purposes only and should not be construed as investment advice. Any opinion expressed on this site does not constitute an endorsement by Capital Com or its representatives. We make no representations or warranties as to the accuracy or completeness of the information provided on this site. If you rely on the information provided on this site, you do so entirely at your own risk.