Market Commentary: Friday 20th March

Soaring oil prices are raising inflation concerns, as key energy infrastructure in the Middle East has been damaged. Investors are worried about the prolonged economic impact of the war.

The US and Israel are attempting to calm markets. Israeli Prime Minister Benjamin Netanyahu suggested the war with Iran could end sooner than many anticipate, stating that Iran no longer has the capability to enrich uranium or manufacture ballistic missiles. US President Trump also indicated he is “not putting troops anywhere” when asked about deploying ground forces. Brent crude fell 1.36% to $108 per barrel.

Global equities are declining for a third consecutive week, with the MSCI All Country World Index down 0.4% so far this week. In Asia, losses in Alibaba weighed on the regional benchmark after the company missed sales estimates due to sluggish growth in its e-commerce unit. Hong Kong’s Hang Seng fell 1.3%, while the MSCI Asia Pacific Index declined 0.4%.

To end the week, markets are closed in Japan for Vernal Equinox Day. On the economic calendar, there are several central bank speakers: the Fed’s Bowman at 12:00 PM, the Fed’s Waller at 12:30 PM, followed by the ECB’s Nagel at 5:30 PM.

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