Good for stocks? Why Tom Lee says the attack on Israel could help equities.

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 97%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

Steven Goldstein is based in London and responsible for MarketWatch's coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein.

It may not seem obvious why an attack on Israel that has killed hundreds, already led to retaliatory strikes, as well as possible regional war, would be good for stocks.

And, on Day 1, it doesn’t appear it will be, with futures on the stock-market contracts ES00, -0.47% NQ00, -0.91% pointing to a weaker start. Market Snapshot: Dow industrials point to triple-digit decline Monday as Israel moves toward ‘complete siege’ of GazaHe said interest rates should decline sharply in a “risk off” environment where investors are reluctant to buy assets perceived as relatively risky.

“The rally in bonds could break the ‘short the bond market’ fervor that has gripped the rates market for the past month, . And as such, we believe a substantial decline in interest rates could happen with the 10-yr BX:TMUBMUSD10Y backing off from the high 4.8%-ish ranges seen lately,” Lee said in a note to clients.“It feels awkward to write about equity market impacts from the Israel-Gaza war. War is a tragedy and resulting in heart-breaking loss.

The U.S. bond market was closed Monday in observance of Columbus Day. Treasury futures TY00, +0.57%, though, were trading higher.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

These money and investing tips can make the market's 'spooky season' less scaryMoney and investing stories popular with MarketWatch readers over the past week.
Source: MarketWatch - 🏆 3. / 97 Read more »