No signs yet of war triggering financial distress, analysts say
Markets have been orderly so far, but picture could change if Strait of Hormuz remains shut
Analysts say the zig-zag pattern of markets in recent days reflects the fast-changing flow of news around the Middle East conflict, and that there are no signs – at least yet – of any emerging financial distress.
“It is notable that the prices of a lot of risky assets simply haven’t responded that much to the rise in oil prices,” Michael Pearce, chief US economist at Oxford Economics, tells Central Banking.
Yields on government bonds in some economies have risen, particularly at the two-year
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