Gaza and the Cost of Capital… Uncertainty rising
In the early hours on Saturday 7th October, Hamas launched an attack on Israel by land, sea and air. The shocking events in the Middle East will be a primary focus this week – just how will Israel react to Iran’s terror by proxy, and how will the attack play out?
Opinion will likely harden on all sides, and the implications for markets could be massive. The critical aspects to watch will be Israel’s reaction and what Saudi Arabia does. Saudi will be seeking to preserve its leadership of the Arab World and is bitterly opposed to Iran. Will it continue to support Russia and higher oil prices, or will it pull away to avoid being blamed for a deeper global recession if energy prices trigger a new inflationary nudge?
This week our Market Strategist Bill Blain, CIO Mike Hollings and Head of Research Ernst Knacke look at the impacts of the new conflict on markets, and how it relates to the coming crisis in bond and credit markets.
Listen in on the conversation below.
Recorded 9th October 2023.
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