Bonds & Stocks
A relative sense of calm returned to global markets on Monday, with stocks rebounding and oil sinking alongside gold as fears subsided that Israel’s war against Iran would escalate into a wider conflict in the Middle East. The S&P 500 rose over 0.5%, while West Texas Intermediate crude sank 1.5%, erasing a rally that earlier topped 6%.
Economy
Israel has launched a strike against Iran’s nuclear and missile programs. Iran has vowed retaliation with a “harsh” blow against the US and Israel. Oil prices have moved sharply higher, with the price of a barrel rising from $70 before the attacks to touch above $78 before falling to current $75.
World
Japan’s once-slumbering bond market has roared back to life with a burst of volatility that is echoing around the world. An analysis by Bloomberg shows that Treasuries have become more sensitive to moves in Tokyo, just as fluctuations in Japan’s $7.8 trillion debt market soar to the highest level in over two decades.