From Business Recorder: 2024-04-19 01:16:42

Mainland China and Hong Kong stocks dropped on the news of escalating tensions in the Middle East. The Shanghai Composite index fell 0.39% while the Hang Seng index dropped 0.88%. This was due to concerns over the impact of geopolitical tensions on global economic stability. Investors are closely monitoring the situation.

The decline in Chinese and Hong Kong stocks comes amidst a broader global sell-off triggered by fears of conflict in the Middle East. International oil prices surged following the US airstrike in Baghdad that killed a top Iranian commander. This has further heightened geopolitical tensions in an already unstable region, leading to increased market volatility.

The Middle East tensions have caused uncertainty and anxiety in financial markets around the world. In Asia, investors are particularly concerned about the potential impact on global supply chains and trade. The situation is also likely to affect commodity prices, especially oil, which could have a ripple effect on the global economy.

The US airstrike in Baghdad has heightened fears of retaliation from Iran, leading to a spike in oil prices. Brent crude surged by nearly 4% following the news, while US crude rose by over 3%. The Middle East is a key oil-producing region, and any disruption to supply could have a significant impact on global energy markets.

The escalating tensions in the Middle East have prompted investors to seek safe-haven assets, such as gold and government bonds. The price of gold rose to a four-month high as investors flocked to the precious metal amid growing uncertainty in financial markets. Government bond yields also fell as investors moved towards safer investments.



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