News

The prospect of a prolonged Middle East conflict is unsettling financial markets, as investors weigh the potential macroeconomic consequences.

As a new global order takes shape and regime-change dynamics heighten geopolitical risks, gold remains a strategic allocation amid rising Middle East tensions, while disciplined risk management helps to contain drawdowns.

The outbreak of a new Middle East conflict involving the US, Israel, and Iran rattled financial markets last week, triggering a broad risk-off shift.

The developments in the Middle East over the weekend mark an expanded regionalisation of previous conflicts, heightening the risk of a more prolonged crisis that could weigh on oil prices if tensions persist over the coming weeks.

Last Friday, the US Supreme Court ruled that the International Emergency Economic Powers Act did not give the President the authority to impose tariffs, providing a lift to global equities. However, President Trump swiftly responded by announcing his intention to apply a 15% global tariff, sending the dollar lower and gold higher as markets moved to price in renewed trade uncertainty.

Global markets remained broadly stable despite ongoing sector rotation and mixed macroeconomic signals.

Despite rising geopolitical tensions, the underlying macroeconomic backdrop remains supportive of risky assets, with US technology, high-yield bonds, and gold continuing to anchor our allocations.

Global equities navigated a volatile week with limited damage. Although investors appear to be recalibrating risk exposures, the earnings season continues to underscore that EPS growth remains firmly driven by the technology sector.

As we head into 2026, emerging market (EM) bonds offer a solid opportunity, backed by improved fundamentals, positive technicals, and attractive all-in yields thanks to high baseline Treasury levels.

The nomination of Kevin Warsh to serve as the next Chair of the Federal Reserve from May pushed the US dollar slightly higher, while gold and silver fell sharply in a deleveraging move that began in Asia.

The mining rally in 2025 was led by precious and base metals, with gold miners up roughly 150% year-to-date, and prices for gold, silver, and copper all at record highs.

Global power demand is entering a new and sustained growth phase, marking a clear shift from the flat or declining trends seen in developed markets over much of the past two decades. This change is being driven by the need to upgrade infrastructure and by rising power demand not seen for years in developed economies.