Safe-haven and risky assets diverged sharply, with gold, U.S. stocks, and exchange rates all showing dramatic movements.
After a previous pullback, capital bought the dip, and rising uncertainty in the Middle East boosted safe-haven demand, driving gold prices higher. COMEX gold futures rose 1.8% in tandem, highlighting the defensive nature of precious metals.
Crude oil extended its gains, with WTI crude rising 3.5% to $105.1 per barrel and Brent crude up 3.2% to $106.6 per barrel, as supply concerns dominated trading.
Tech stocks led the rebound, with Nvidia and Tesla rising more than 4%, and the Philadelphia Semiconductor Index gaining 3.1%, showing a temporary recovery in market sentiment.
However, JPMorgan sharply cut Tesla’s target price to $145, warning of a potential 60% plunge, triggering concerns in the new energy vehicle sector.
The daily transaction volume of the RMB Cross-border Interbank Payment System (CIPS) exceeded 1.22 trillion yuan, hitting a record high. The U.S. Dollar Index retreated in volatile trading, while non-U.S. currencies diverged, with safe-haven currencies such as the Japanese Yen and Swiss Franc gaining slightly.
The IMF Managing Director warned that conflicts in the Middle East are pushing up global inflation and slowing growth, and that disruptions to fertilizer supply chains could raise the risk of a food crisis.
In the short term, global markets will remain focused on developments in the Middle East, and safe-haven assets are likely to continue attracting capital inflows.
