Global Stocks Fall and Oil Rises on Middle East Unrest
World equity markets declined on Wednesday as escalating hostilities in the Middle East dampened investor risk appetite and pushed Brent crude prices toward 97.81 dollars per barrel. Major Wall Street indexes pulled back from recent record highs while the Japanese yen weakened past the 160 level against the dollar.
Global equities fell 0.65% and Brent Crude Oil rose 1.89% to $97.81 on Wednesday as conflict in the Middle East intensified. The S&P 500 lost 0.74%, pulling back from record highs after Iran attacked an airport in Kuwait. Escalating hostilities are dampening risk appetite and forcing investors to price out United States interest rate cuts.
Sarmaya Partners chief investment officer Wasif Latif said the market is taking a breather following a strong multi-session rally. Hostilities near the Strait of Hormuz and failed diplomatic efforts drove the selloff.
