Events in the Middle East are causing unrest among investors around the world. The Swiss leading index starts with initial losses, in line with its European counterparts. However, these are relatively moderate, because, for example, heavyweight Nestlé offers a certain counterbalance with its price gains. Palestinian Islamist group Hamas’ attack on Israel this weekend adds geopolitical risks to an already fragile market.
The price of crude oil rises accordingly. Precious metals and government bonds are also being sought as ‘safe havens’, says a trader. Meanwhile, US bond markets remain closed for holidays. Rising oil prices are likely to increase persistent inflationary pressures, fueling interest rate concerns, stock traders warn. Still, it is difficult to predict the magnitude of price movements in the event of geopolitical shocks, according to a market participant.
The SMI lost 0.42 percent to 10,792.40 points around 9:15 am. The SLI, which includes the top 30 stocks, fell 0.68 percent to 1,686.10 points and the broader SPI fell 0.40 percent to 14,105.62 points. Of the 30 SLI values, 25 are decreasing and five are increasing.
The German DAX fell by 0.82 percent to 15,105.26 points in the first trading hour. This brings the most recent low since late March back into focus at 14,948 points. On Friday, Germany’s leading index reined in its weekly deficit with significant gains following the monthly US labor market report. The leading index EuroStoxx 50 in the eurozone fell by almost one percent. (saw/sda/awp)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
