#ForexChief #market #forexnews #stocks #worldnews #profit #StockMarket #Hamas #Israel ⠀
⚔️ Hamas vs. Israel: what will happen to the market when the smoke from the explosions clears
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Hamas's aggression and Tel Aviv's response are destabilizing the region, home to a key transportation hub and several leading crude oil suppliers. The war risk premium has returned to the markets.
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Biden personally called Netanyahu, and Defense Secretary Austin said the United States is ready to provide
Israel with everything it needs to defend itself. US plans for regional integration with Arab and Muslim neighbours, such as the India-Middle East-Europe Economic Corridor (IMEC), are on hold.
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Inappropriately high prices for oil and gold are guaranteed in the medium term. Stocks are preparing for massive sell-offs.
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Energy prices depend on the duration of the fighting and which other countries will be drawn into the conflict. The Hamas attack was openly approved by Iran and Hezbollah, Iran's Lebanese allies. Markets see Saudi Arabia's reaction as negative: an official statement said the violence could be linked to Israeli occupation, provocations and the deprivation of Palestinians' rights.
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The conflict increases pressure on the Israeli market, which is considered the most stable in the region.
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So far, the reaction of market participants is limited to the search for safe-haven assets.
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The impact on major currencies is still restrained; the dollar is strengthening, but not critically. The Israeli shekel showed a drawdown of more than 3% at the moment but is actively trying to correct itself, as it received support from the Bank of
Israel for $45 billion and the next tranche of $20 billion is already ready.
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In oil, major players are waiting for the first results of
Israel's retaliatory strike, and will also monitor the participation of the United States and the EU in the situation.
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An excellent situation for the growth of gold, but so far only speculators are visible in purchases – we do not recommend taking risks.
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So for now we wait and mourn the dead.
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Profits to y’all!