Passersby walk in front of an electric screen displaying Japan's Nikkei share average outside a brokerage in Tokyo, Japan, on Mar 21, 2024. SINGAPORE: Asian shares slumped and gold prices rose on Monday as risk sentiment took a hit after Iran's retaliatory attack on Israel stoked fears of a wider regional conflict and kept traders on edge.
Oil prices, however, hardly reacted to the news, as traders had largely priced in a retaliatory attack from Iran that would likely further disrupt supply chains. That saw Brent crude futures peaking at US$92.18 a barrel last week, the highest level since October. "A rise in oil prices would complicate efforts to bring inflation back to target in advanced economies, but will only have a material impact on central bank decisions if higher energy prices bleed into core inflation."
The benchmark 10-year yield last stood at 4.5277 per cent, while the two-year yield held near the 5 per cent level and was last at 4.8966 per cent. That sea change in the rate outlook has in turn sent the dollar on a tear, pushing it to a 34-year peak of 153.69 yen on Monday."We have updated our forecasts for the US FOMC, pushing out the timing of the start of the interest rate cutting cycle to September 2024, from July previously," said Kristina Clifton, a senior economist at Commonwealth Bank of Australia.