Stock Market LIVE Updates: "The escalating conflict between Israel and Iran has dominated the markets this week, sending crude oil prices higher over concerns that the conflict will disrupt global supply, especially around the Strait of Hormuz, which facilitates the transportation of more than 20 per cent of global oil.
Another consequence of higher oil prices is that they feed directly into transportation, energy, and food costs, which increases the likelihood of a fresh inflation wave just as central banks were beginning to ease, leaving central banks and policymakers with tough and more complex decisions to make.
The conflict has also seen Gold given another boost, as investors look to move to safer assets, boosting demand during times of geopolitical risk and inflation uncertainty.
Geopolitical tensions are not just limited to the conflict in the Middle East and the ongoing war in Ukraine, as the struggle for power in the new world order continues between China, Russia and the US, which is driving a risk repricing. We have also seen recent data from China which has shown a modest recovery in industrial output and consumer spending, which again can alleviate some fears of a slowing economy that would impact heavily on demand from China for commodities such as oil, copper and iron ore, boosting prices.
China has adopted a more targeted strategy when it comes to its stimulus efforts. Investors should monitor policy signals from China, as whilst there is cautious optimism, it remains cautious due to China’s uneven growth path. In the current market environment, diversification and a strong understanding of macro risk management will be critical for navigating the months ahead."
Views by Ross Maxwell, Global Strategy Operations Lead, VT Markets
 "Stock Market close highlights: Sensex sheds 139 pts, Nifty at 24,812; IT, Metal drag; Cons Dur shine")
