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Hamas attack on Israel disrupts market calm☕
However, the market calm would not last, as this weekend saw an unprecedented attack by the Hamas Group on Israel, leading to concerns of a more entrenched conflict in the region and risks of another war. The last Israeli intelligence of this magnitude led to the Yom Kippur War in 1973, which saw dramatic rallies in oil (less supply) and gold (flight to quality), a jump in bond yields (inflation), and a corresponding sell off in equities. This time around, markets are relatively more reserved, as we are opening Monday morning with a small pop in oil/gold/bond prices and a mild -0.6% sell off in stocks. Outside of the human tragedy associated with all kinetic conflicts, the market's major focus will be on oil supply, and whether the current attack significantly unwinds the Middle East detente that the world has strived to broker in recent years. We pray that conflicts can de-escalate quickly to minimize the toll on human losses.
