Iran's attack on Israel is sapping investor confidence, with many investors fearing a sharp sell-off in risky assets if the situation worsens.
In addition to factors from tensions in the Middle East, world stock markets will also look to the US regional employment report scheduled to be released later this week.
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| Financial markets are reeling due to political unrest in the Middle East. Photo: CNBC. |
Accordingly, in the morning trading session on October 3, a series of Asian stock markets went down. The Nikkei 225 index (Japan) decreased by 1.97%. The Kospi (South Korea) lost 1.22%.
Australia's S&P/ASX 200 fell 0.3%. The MSCI Asia Pacific Index lost 0.5%. Similarly, stocks in Malaysia, Thailand and Indonesia were also in the red. Markets in mainland China and Hong Kong were closed for a holiday.
This development is similar to Wall Street on October 1. The S&P 500 index at times decreased by 0.1%, at times remained flat and closed at 5,746 points. The Nasdaq Composite lost 0.27% and stopped at 19,910 points.
The dollar also hit a three-week high against the euro after the US jobs report showed signs of improvement in September ahead of highly anticipated jobs data on Friday.
Stocks got off to a rocky start in early October as escalating tensions in the Middle East sent investors into a tailspin. Stocks fell sharply immediately after Iran launched a missile attack on Israel. Investors are bracing for further escalation as Israel begins a ground offensive in Lebanon.
Economists also said that oil prices may also show signs of increasing due to concerns that the escalating situation in the Middle East could threaten oil supplies as well as this region having the largest oil production in the world.
Accordingly, Brent crude oil futures increased by 64 cents to 74.54 USD/barrel. US WTI crude oil futures increased by 72 cents to 70.82 USD/barrel. The safe-haven metal continued to move sideways, with the world gold price trading at 2,667 USD/ounce.
US President Joe Biden said he would not support any Israeli attack on Iran's nuclear sites and called on Israel to respond to Iran's largest-ever attack on Israel. Iran also said there would be no further attacks unless there was further provocation from Israel after it launched a missile attack on the country on October 2.
Experts also said that political instability in the Middle East could reduce investor confidence, causing volatility in financial markets. Major oil importing countries such as China, Japan and European countries will face challenges in trade balance and economic stability.
Source: https://congthuong.vn/cac-nha-dau-tu-dang-bat-an-truoc-nhung-cang-thang-leo-thang-o-trung-dong-350010.html
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