Over the weekend, Iran launched attacks on Israel, causing a ripple effect in financial markets. Bitcoin saw a decline in value, but other markets remained relatively stable when they reopened on Monday. Oil prices initially experienced volatility but have since settled at a level similar to Friday’s closing price. USD/JPY reached a fresh 30+ year high, indicating a strong US dollar against the Japanese yen.
In response to new US and UK sanctions banning Russian supplies, industrial metals like aluminium and nickel surged in value. Aluminium saw its biggest single-day jump in over 30 years, showing the impact of geopolitical events on global markets. Meanwhile, in China, the central bank maintained the Medium-term Lending Facility rate at 2.5% but injected 100 billion yuan into the economy. Chinese stock markets traded higher following restated capital market policies and increased stakes in big banks by the state wealth fund Central Huijin.
Despite the positive performance of Chinese stock markets, Bloomberg reports a significant funding gap of $553 billion for Chinese private developers to complete pre-sold homes. This information, provided by Goldman Sachs analysts, highlights ongoing challenges in China’s real estate market. As global political tensions continue to impact financial markets, investors are closely monitoring developments in different regions for potential implications on their portfolios.