Key Takeaways Renewed US-Iran tensions pushed Brent crude briefly above US$80 , reigniting concerns over global energy supplies. Despite geopolitical uncertainty, Wall Street avoided a sharp sell-off , suggesting investors believe the conflict remains manageable for now. Higher oil prices have revived expectations of a Federal Reserve rate hike , as markets worry about renewed inflation. Technology stocks remained relatively resilient , showing that AI continues to provide underlying support for equities. The next move in oil prices could determine whether market volatility returns. Market Insight When news broke that the US had launched fresh strikes on Iran , investors immediately rushed into the oil market. Brent crude briefly climbed above US$80 a barrel , as fears grew that escalating tensions could disrupt supplies through the Strait of Hormuz , one of the world's busiest energy shipping routes. Yet the reaction in equities was far more measured. Although the S...
The global economy crisis has led the central banks all over the world to reduce the interest rates to close to 0% which is the all time low. With interest rates that low, borrowing has been cheap which can indirectly spurs the economy - low interest rates, company can borrow to for company expansion, people can borrow more to buy properties and people are forced to spend their money or savings. In fact, the global stock market has been rallying non-stop since March 2009 because of low interest rates and this lead to the presumption that global economy has recovered, although the jobless in the United States stays at 10%. Some has the feeling that the stock market and commodities rally was led by low interest rate because people starting to treat stock market as just another legalized casino. Nevertheless, I do believe we are on the way of recovery but this road is expected to have a lot of potholes. With recovery on the way, central banks will be slowly starting to raise the interest...