Local stocks, peso slide on fears of prolonged Middle East conflict

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The 30-company Philippine Stock Exchange index lost 7.79 points, or 0.12 percent, to close a 6,252.16, while the broader all-shares inched up by 0.78 points, or 0.02 percent, to 3,380.05.

Oil prices rallied while the dollar and yen advanced Monday after Hamas launched a shock attack on Israel at the weekend, sparking fresh concerns about tensions in the Middle East. “Key for markets is whether the conflict remains contained or spreads to involve other regions, particularly Saudi Arabia,” said ANZ Group’s Brian Martin and Daniel Hynes.

“Meanwhile, stocks tend to eventually recover and trend higher after an initial period of volatility. Safe-haven assets like gold and Treasurys, which initially see gains during such crises, tend to fade from their initial price spikes as the situation stabilizes.

 

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