Global markets stage a 'whiplash' recovery..
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| US military objectives are 'pretty well complete' were the main words from the President last night which has triggered a financial comeback this morning.
GBP v USD lost 0.8% over the weekend, but has recovered 1.2% since.
Oil surged to $119 and is now at $90, a record 24-hour drop.
The resilient S&P 500 & Nasdaq has clawed back heavy losses at the opening yesterday and are now up pre-trading 0.8% and 1.4%.
This is the kind of initial response we would expect to see once a conflict like this is over. The problem is, it's not over yet..
UK bonds have had a wild 48-hours. A de-escalation today comes after reaching the highest point since May 2025 yesterday.
Investors appear to be worried about the prospects of higher UK energy prices, no interest rate cuts this year, low economic growth and no fiscal headroom to respond all because of the Iran-US war.
Some analysts have had their say on Prime Minister Starmer's comments yesterday concerning the issue of higher energy prices; "No matter the headwinds, supporting working people and their families with the cost of living is always top of my mind".
Back in 2022, Liz Truss announced an energy support package that was to cost £60BN in 6-months and then followed up with her infamous 'mini-budget' which crashed the Pound and investors trust in the government.
The fact that the PM confirmed Chancellor Reeves was in touch with the Bank of England is a concern for financial markets as it means the government is somewhat worried about the near future landscape.
£-$ is currently trading at a 10-day high after being at a 2026 low during the month and GBP v EUR continues to hold the £-€1.1550 key resistance level. |
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