The financial markets remain gripped by anxiety over rising tensions in the Middle East, and concerns that the Israel-Hamas war could drive up oil prices, fuelling inflation. Markets across the Asia-Pacific region are in the red today, with Japan’s Nikkei losing 1.85%, and China’s CSI 300 down 1.9%. That follows a sell-off yesterday in Europe, and then losses on Wall Street. Gold hit its highest level since 1 August yesterday, touching $1,962 per ounce, as investors favoured traditional safe-haven assets. Oil jumped too, with Brent crude hitting $93 per barrel on Wednesday, before slipping back to $91 this morning. Investors have also been driving down the price of government bonds. This pushed the yield, or interest rate, on 10-year US government bonds to their highest since 2007, early in the financial crisis. Global investors are focused on the Middle East, where US president Joe Biden yesterday met with his Israeli counterpart, Benjamin Netanyahu – who has pledged to allow aid into Gaza via Egypt. But Biden’s meetings with leaders from the Arab world were cancelled, following the explosion at Gaza’s al-Ahli Arab hospital. Risky assets face the double risks of higher real yields and increasing geopolitical tensions, says Mohit Kumar, chief economist for Europe at investment bank Jefferies. He told clients: "Geopolitical risks moved up a notch [yesterday] as Biden’s peace visit was snubbed by a number of Arab countries. Peace efforts are ongoing with the UK’s PM expected to make a visit to the region." Rating agency Standard & Poor’s fears that the crisis could create a new inflationary shock, and hurt global growth, if it escalates. In a new report it warned:“Even in the absence of a material energy supply shock, the evident sensitivity in energy prices to recent events indicates that some inflationary pressures could persist through the northern hemisphere winter.” The agenda • 8.30am BST: Bank of Indonesia sets interest rates • 1.30pm BST: US weekly jobless claims • 5pm BST: Federal Reserve chair Jerome Powell speaks at the Economic Club of New York We’ll be tracking all the main events throughout the day ...
A quick word to say thank you for subscribing to this newsletter
Our open journalism is supported by people like you. Help power the Guardian’s reporting for the years to come. If you can, please support us from just £1. It takes less than a minute to set up. Thank you.
Preserving family wealth takes more than just a large asset base and some complicated estate planning. To last for several generations, the family must understand and believe in the story of that wealth. It may be time to change your mindset. Investment involves risk.
… there is a good reason why NOT to support the Guardian
Not everyone can afford to pay for news right now. That is why we keep our journalism open for everyone to read. If this is you, please continue to read for free. But if you are able to, then there are THREE good reasons to support us today.
1
Our quality, investigative journalism is a scrutinising force at a time when the rich and powerful are getting away with more and more
2
We are independent and have no billionaire owner pulling the strings, so your money directly powers our reporting
3
It doesn’t cost much, and takes less time than it took to read this message
Help power the Guardian’s journalism for the years to come, whether with a small sum or a larger one. If you can, please support us on a monthly basis from just £2. It takes less than a minute to set up, and you can rest assured that you're making a big impact every single month in support of open, independent journalism. Thank you.
You are receiving this email because you are a subscriber to Business Today. Guardian News & Media Limited - a member of Guardian Media Group PLC. Registered Office: Kings Place, 90 York Way, London, N1 9GU. Registered in England No. 908396
