Abzee
Mini drones? Missiles? From Israel? Somewhere else? Reports of the explosions heard in the cities of Isfahan and Tabriz in Iran are still murky, but state media have downplayed the damage from the suspected attacks, while Tehran has raised the issue. flight restrictions. Attacks against air defense positions in southern Syria were also reported.
No one knows if tensions will ease, but it appears that markets have overcome the initial shock. Up more than 4% Immediately after the reports, WTI Crude Oil (CL1:COM) fell from its highs, trading only 1% more at 83 dollars a barrel. Stock futures tied to the Dow (DJI), S&P (SP500) and Nasdaq (COMP:IND) were also discount greater than 1% on the news, but have since halved those losses, while gold (XAUUSD:CUR) remains essentially unchanged.
Just hours before the suspected retaliation, S&P Global cut Israel’s credit rating one notch, from AA- to A+, joining Moody’s Investors Service in lowering the nation’s sovereign credit score.
“We expect Israel’s general government deficit to rise to 8% of GDP in 2024, primarily due to increased defense spending,” the agency said in a statement. “We expect a broader regional conflict to be avoided, but the war between Israel and Hamas and the confrontation with Hezbollah look set to continue through 2024, compared to our previous assumption that military activity would last no more than six months.” .
Two weeks ago, Fitch removed Israel from “Rating Watch Negative” and affirmed its A+ rating, with investors watching the scores impact Israeli bonds and pressure on the shekel.
Related ETFs: BATS:IZRL, NYSEARCA:ITEQ, NYSEARCA:EIS, NYSEARCA: ISRA