Markets may ignore West Asia events till there's no invasion: Chris Wood

Over the past few weeks, equity markets have reacted sharply to the developments in West Asia with most frontline indices across the globe slipping 1 per cent to 7 per cent.

Markets will continue to try to ignore events in West Asia so long as no invasion is launched, wrote Christopher Wood, global head of equity strategy at Jefferies in his latest weekly note to investors, GREED & fear.

This, he believes, can even trigger a relief trade in the markets, allowing them to ignore the native implications of uncomfortably high bond yields for a while.

“If GREED & fear is wrong and the invasion is launched, there will be an immediate negative impact