Tel Aviv, Israel – Over the weekend, international tensions escalated as Iran launched attacks on Israel. The impact of these attacks rippled through various markets, with Bitcoin experiencing a decline. However, the broader financial markets appeared to stabilize when they reopened on Monday/Sunday evening in the US.
The opening of oil trading was marked by volatility, but prices have since steadied, showing little change from Friday’s levels. A similar trend was observed in the foreign exchange market, with the USD/JPY reaching a new 30-year high. In the industrial metals sector, aluminum and nickel saw significant increases in value, driven in part by new sanctions imposed by the US and UK on Russian supplies.
In China, the People’s Bank maintained the month’s Medium-term Lending Facility rate at 2.5%, injecting 100 billion yuan into the economy. However, this move did not fully counterbalance the 170 billion yuan set to mature later in the week. Despite the need for economic stimulus, the central bank remains cautious about cutting interest rates to prevent further depreciation of the yuan.
Stock markets in mainland China responded positively to key policy announcements from Chinese authorities, with state wealth fund Central Huijin increasing its stakes in the country’s major banks. Meanwhile, Chinese private developers are facing a substantial funding gap estimated at $553 billion to complete pre-sold homes, according to Goldman Sachs analysts.
Overall, the geopolitical tensions in the Middle East, combined with economic developments in China and the global markets, are creating a complex landscape for investors and policymakers alike. The impact of these events is likely to reverberate across various sectors in the coming days, shaping the trajectory of international relations and financial markets.