Financial Markets Rattled by Middle East Military Escalation
A new, yet another, phase of uncertainty looms on the horizon for financial markets. With the tariff issue still unresolved, investors are now facing the military escalation in the Middle East. The Israeli attack on Iranian nuclear facilities has led to an initial rise in gold and oil prices. It’s too early to discuss the consequences, but the situation is certainly becoming, if possible, even more delicate.
The developments in Middle Eastern tensions risk upending the scenario previously outlined by our intermarket dashboards. Gold is accelerating, and the risk-on sentiment is declining. For now, the underlying trends remain stable, but it’s clear that what happens in the coming days will be decisive in determining where this new, yet another, phase of uncertainty will lead us.
On the macroeconomic front, today’s focus is on data regarding industrial production and the trade balance in the Eurozone for April, as well as U.S. consumer confidence figures.
Our forecasting models still indicated a positive tone for U.S. equity markets, while Europe remained uncertain. The verb is in the past tense because, of course, the latest news from the Middle East—unaccounted for in the analysis—will most likely lead to a negative opening on Wall Street as well. Gold and oil are showing positive signals, while volatility is expected to rise.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 13 June 2025 - 7:22 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
