Risk Assets Under Pressure From Growing Middle East Tensions

US equity markets fell sharply Monday as traders took risk off the table. The impact of Middle East tensions between Iran and Israel on U.S. indices, which experienced sharp sell-offs. Amidst this risk-off environment, assets like gold and the U.S. dollar retained strength. Key economic data were mentioned, including higher-than-expected Chinese Q1 GDP, rising UK unemployment figures signaling potential rate cuts by the Bank of England, improved German and Eurozone economic sentiment, and various inflation updates on the horizon. Cawley also noted marked volatility in equity markets, with particular emphasis on tech-heavy indices, and discussed currency movements, pointing out the strong dollar trend and potential Japanese intervention in the yen market. Investors were advised to monitor safe-haven assets and the VIX for insights into market sentiment.