Closing Bell 9th October: Middle East Tensions Fuel Oil Surge

Oil Surges Amid Middle East Tensions
Oil prices spiked by over 4% due to Hamas’ unexpected attack on Israel, raising concerns about the stability of the Middle East, a crucial region for global energy supplies. While the immediate threat to oil supply remains uncertain, potential retaliation against Iran could heighten tensions around the Strait of Hormuz, a critical shipping route. Market analysts anticipate heightened volatility, especially if the conflict spreads to other regions like Saudi Arabia.

Dollar Strengthens Following Israel Attack
The US dollar rose against major currencies as traders reacted to the sudden attack by Hamas on Israel. Recognized as a safe haven during crises, the greenback’s surge also impacted other currencies, with the Australian dollar declining. The dollar’s rally continues its impressive performance, further influenced by the Federal Reserve’s aggressive interest rate hikes and the US economy’s resilience.

Chinese Stocks Dip Post-Golden Week
Chinese stocks witnessed a decline as traders resumed after the Golden Week holidays. External factors, including global market turbulence due to the Treasuries selloff and the oil price surge following the Israel attacks, influenced the drop. Despite tourism revenue surpassing pre-COVID-19 levels during the Golden Week, it failed to meet government expectations. The ongoing property market crisis and other economic challenges contribute to the prevailing market pessimism.