Skip to main content

Tensions in Israel Reverberate Globally — US Equities, Cryptos Falter Amid Mideast Conflict; Oil and Metals Capitalize

Tensions in Israel Reverberate Globally — US Equities, Cryptos Falter Amid Mideast Conflict; Oil and Metals Capitalize

Markets faced turbulence on Monday as all four major U.S. indices took a downward turn, influenced by the Israel-Hamas conflict which escalated into an outright war over the weekend. The crypto economy experienced a 1.8% dip against the U.S. dollar on the same day. Meanwhile, the onset of the Middle Eastern conflict spurred a surge in precious metals and crude oil prices.

Mideast Crisis Sends U.S. Stocks, Crypto on Downward Spiral; Oil, Metals Gain Ground

U.S. stocks took a hit on Monday, even as the bond market paused for Columbus Day. The market, already grappling with challenges from the Ukraine-Russia conflict, surging inflation, and climbing interest rates, is facing added pressure. While Friday saw a positive close for all four key indices — S&P 500, Dow Jones, Nasdaq, and Wilshire 5000 — Monday morning painted a different picture with declining figures. The recent dip is largely attributed to the unfolding uncertainties in the Mideast conflict.

The crypto economy mirrored the downturn in equities on Monday, sinking over 1.8% with BTC dwindling by 1.7% and ETH dropping 2.46% against the U.S. dollar during the early trading hours (Eastern Time). In contrast, defense giants like Northrop Grumman and Lockheed Martin saw their shares ascend nearly 5% on the same day. While stocks and cryptocurrencies faltered against the dollar, traditional safe havens like Treasury bonds, gold, silver, and the Japanese yen experienced an uptick on October 9. Gold gleamed with a 0.74% rise in a day, while silver’s value edged up by 0.16% at 10:00 a.m. (ET).

Crude varieties such as WTI and Brent experienced significant surges, with WTI climbing 3.7% and Brent ascending 3.46% over the last 24 hours. Susannah Streeter, Hargreaves Lansdown’s head of money and markets, remarked to Bitcoin.com News that surging oil prices are likely to fan the flames of inflation concerns. She noted, ”The shocking attacks in Israel have sent the price of oil soaring, as investors assess the potential for the conflict to disrupt supply in the Middle East, if other countries are drawn in.”

The market strategist at Hargreaves Lansdown further commented:

This latest jump will fuel inflationary worries, at a time when investors are already jittery about the interest rates potentially staying higher for longer.

This uptick in oil prices aligns with the Organization of the Petroleum Exporting Countries (OPEC) raising its output projections to 116 million barrels per day (bpd) by 2045, a hike of 6 million bpd from last year’s forecast. On Sunday, Saudi Arabia’s energy czar, prince Abdulaziz bin Salman, told CNBC that OPEC is adopting a “precautionary approach.” The consortium, led by Riyadh, has scaled back oil output, and there’s chatter about potential further reductions down the line.

What do you think about the Mideast conflicts that are shaking global markets? Share your thoughts and opinions about this subject in the comments section below.



from Bitcoin News https://ift.tt/anG5vof
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more