European markets opened lower on Monday but were neutral by the afternoon, as investor sentiment remains cautious in the face of rising oil prices and Middle Eastern geopolitical issues. At the time of writing, Germany’s DAX was down approximately 0.04%, the FTSE 100 recovered earlier losses, up 0.59%, and France’s CAC 40 pulled back into the green, up 0.05%. The lower start followed losses in Asia, where markets sank overnight due to fears about rising oil costs and the likelihood for additional escalation in the US-Iran battle.
Since the first few days of the conflict, duration has been the main concern, and reports of US troops in the region approaching 50,000 implied that a ground invasion was imminent, despite the President’s protestations otherwise and more in line with Iran’s flat denials,” Richard Hunter, head of markets at Interactive Investor, said in an email commentary note sent to Euronews.
As the battle drags on, the cost and time required to repair the damage will rise, implying that oil prices may remain high for an extended length of time, boosting global inflationary pressure,” Hunter noted.
Also Read:
Christoph Klein: Reimagining Sustainable Investment with ESG Portfolio Management
Dr. Akintoye Akindele: Empowering the Future of Africa through Investment and Leadership
