2023-10-16 05:05:39
Crude oil held above $90 a barrel, stocks fell and the safe-haven dollar remained firm Monday amid heightened concern over escalating violence in Gaza and to the prospect of the conflict extending beyond Israel and Hamas, into the entire region.
The Israeli shekel fell to its lowest level in more than eight years following Israeli Prime Minister Benjamin Netanyahu vowed to “dismantle Hamas” in retaliation for the October 7 attack that left 1,300 people dead. worst attack on civilians in Israeli history.
US Secretary of State Antony Blinken is traveling to the region to try to prevent further escalation. Mr Netanyahu agreed to lift the water blockade in parts of southern Gaza following speaking with US President Joe Biden.
Brent crude oil futures hit a recent high of $91.20 on Monday, before trading little changed just below $91, following Friday’s 5.7% rise.
Japan’s Nikkei stock average fell 2%, while Hong Kong’s Hang Seng slipped 0.43% and the mainland blue chips fell 0.69%.
Australia’s S&P/ASX 200 index lost 0.35% and New Zealand’s benchmark fell regarding 1%.
The pan-European STOXX 600 index lost nearly 1% on Friday and New York’s S&P 500 fell 0.5%, although U.S. stock futures pointed 0.2% higher on Monday. .
“The situation is dynamic and it is too early to say whether the hedging placed on Friday is unwarranted, but there have been pockets of positive news,” Chris Weston, head of research at Pepperstone, wrote in a note, citing the resumption of water supply as an example.
“Risk and energy markets will be waiting for headlines and actions from Iranian officials who have said they have a duty to help the Palestinians.
Overall, currencies resumed some of their late-week movements, with the U.S. dollar index edging down to 106.51 following hitting 106.79 on Friday.
The euro rose 0.14% to $1.05255, while the yen was little changed at 149.445 per dollar.
The Israeli shekel weakened to 3.9900 per dollar early in the day for the first time since April 2015, although it has since rebounded regarding 0.3% to 3.9650.
Benchmark 10-year U.S. Treasury yields rose slightly to 4.6581%, following falling more than 8 basis points on Friday, amid demand for bond safety.
Gold lost regarding $12 from the $63 gained Friday, falling 0.6% to $1,919.29 an ounce.
“Ultimately, gold and oil prices are the most sensitive expressions of the risks of the (Gaza) conflict,” Kyle Rodda, senior financial markets analyst at Capital.com, wrote in a note.
However, “identifying potential hotspots and gaming scenarios is very difficult,” Rodda added.
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