Global markets remained volatile early Wednesday as uncertainty over potential US involvement in the Israel-Iran conflict combined with caution ahead of the Federal Reserve’s monetary policy meeting.
Tuesday brought no relief from recent market volatility, as geopolitical tensions and global developments continued to weigh heavily on sentiment.
Tensions between Israel and Iran have escalated sharply after Israel launched pre-emptive strikes on Tehran’s nuclear facilities, drawing global attention and shaking market sentiment.
Early Friday, Israel shocked global markets by launching airstrikes on Iran’s Natanz nuclear facility, confirming US signals that Israel was preparing for conflict.
Market sentiment stays mostly negative on Thursday, driven by rising geopolitical tensions and doubts about the US-China trade deal.
The euro (EURUSD) and British pound (GBPUSD) remained under pressure, while the Japanese yen (USDJPY) edged higher.
Markets welcomed the first day of US-China trade talks in London, with positive signals coming from both sides.
Early Monday, cautious optimism is supported by hopes for progress in US-China trade talks, a slightly better-than-expected US jobs report, and holidays in Australia and parts of Europe.
Market sentiment improves as tensions ease between Trump and Elon Musk, Trump’s positive call with China’s Xi, and no major escalations from Iran or Russia.
Markets remain cautious early Thursday as a mix of trade tensions, geopolitical risks, and weak US data clouds sentiment.
Markets stayed cautiously optimistic on Tuesday, supported by upbeat US JOLTS Job Openings, positive sentiment among chipmakers, and no Russian retaliation to Ukraine drone strikes.
Risk appetite remains fragile as fears grow over the US-China trade deal, Trump's tariffs, and mixed geopolitical developments.
The new trading week opens with a cautious mood as global markets react to renewed trade tensions and geopolitical unrest.
