HEBDO POINT

The war in Iran is entering its twelfth week with no apparent resolution in sight, causing increasing concerns about its impact on the real economy, specifically on inflation and growth.

However, the dark clouds hanging over the economy have not affected the performance of global stock markets so far. After the initial shock, they have largely overlooked the geopolitical issues in the Middle East, with artificial intelligence (AI) currently dominating the landscape, particularly on the New York Stock Exchange.

A look at market perspectives in the coming days reveals several key events: 1. President Donald Trump concluded a two-day summit in Beijing with Chinese President Xi Jinping, with few concrete results that markets may find strategically reassuring but ultimately disappointing. 2. Finance ministers and central bank governors from the Group of Seven (G7) countries will meet in Paris to discuss a range of issues, from the Iran impasse to securing critical mineral supply chains, oil prices, and recent global bond market volatility. 3. Despite the lack of diplomatic progress, Brent crude oil prices remain high and the risk of negative economic repercussions is increasing daily. 4. Bond markets from the UK to Japan to the US are facing various challenges, including rising inflation indicators, political instability, and changing investor expectations regarding interest rate movements.

From AI to retail giants like Nvidia and Walmart to the impact of the war in Iran on global energy prices, the fluctuating financial landscape is keeping investors on edge and raising concerns about the fragility of British finances, particularly as political turmoil within Downing Street unfolds.

As investors track results and watch for widening performance gaps between American and European stocks, disruptions in global energy supply are hitting Europe harder due to greater import dependence compared to the US. The divergence in the performance of tech companies and consumer spending trends is exacerbating this gap.

With upcoming economic data releases, including Japan’s GDP figures and China’s property prices and retail sales, market participants will be closely monitoring inflation pressures and growth risks to navigate the evolving financial landscape.

(Note: The text has been professionally translated and retains the key information from the original article. The translation focuses on the financial impacts and market perspectives discussed in the content.)