The escalation in the Middle East dominates all other drivers, leaving markets focused almost exclusively on geopolitical risk. The US dollar is broadly stronger, while traditional safe havens such as gold, the Swiss franc, and Treasuries are under pressure. Equity markets are retreating and surging oil prices are weighing on bonds. With uncertainty elevated and visibility limited, economic data carry less influence. Under these conditions, disciplined risk management appears more relevant than short-term forecasts.

Asia Pacific Markets

Trading across Asia Pacific reflected sharp risk aversion. Japanese indices dropped around 3%, while South Korea’s Kospi led regional losses with a fall of roughly 7.25%. Some smaller markets managed modest gains. The US dollar strengthened against the yen, approaching JPY158 after testing last month’s highs. Australia’s dollar weakened despite hawkish signals from the central bank, while local yields climbed. India’s markets were closed for a national holiday, limiting broader regional participation.

European Markets

European assets remain under pressure. The Stoxx 600 is down more than 3% as investors reassess risk exposure. The euro slid toward key technical levels, briefly nearing $1.1580 after trading below $1.1710. Preliminary February inflation in the eurozone surprised to the upside, with headline CPI at 1.9% and core at 2.4%. Bond markets are reacting to higher oil prices and global yield moves, pushing benchmark rates across the region 9–15 basis points higher.

American Markets

In North America, the dollar advanced against most major and emerging currencies, including the yen, peso, yuan, and Brazilian real. The US 10-year Treasury yield rose toward 4.10%, reflecting pressure from rising oil prices and global bond weakness. US equity futures point to losses of roughly 1.7%–2.3%. April WTI crude surged above $77 before easing slightly. Investors await February auto sales data, expected to rebound after January’s sharp slowdown.