Market Comment | US-Iran conflict rattles financial markets

Summary

Increasing U.S.-Iran geopolitical tensions quelled markets risk-on mood. Moreover, weaker manufacturing data in the U.S. and China also contributed to the increase in investor cautiousness at the end of the week, despite better-than-expected data in the Eurozone.

Key points

• Key points:
• Both oil and gold prices soared after US attack in Baghdad.
• Safe-haven yields declined sharply, while equity markets reverse weekly gains.
• FX markets reflected some increase in risk aversion, with USD and JPY appreciating.

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