Latest / Best of Business / Shane Solly: Harbour Asset Management expert on the market reactions to the third week of the Iran conflict

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Shane Solly: Harbour Asset Management expert on the market reactions to the third week of the Iran conflict · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks. They'd be
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  Speaker 2: Shane Solly Harbor Asset Management is with US high Shane. Hello,
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  Speaker 2: all right, So we've got third week of the conflict
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  Speaker 2: starting now. Got the oil prices sitting above one hundred
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  Speaker 2: bucks a barrel. How have the investment markets reacted and
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  Speaker 2: what about the local markets?
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  Speaker 3: Yeah, we've seen more de risking a couple of different ways.
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  Speaker 3: We can see that the long term bond rates, which
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  Speaker 3: are driven by inflation concerners and risk premiums going up
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  Speaker 3: there up about zero point three percent, so US tenure
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  Speaker 3: gove my bonds four point three percent. Locally we're about
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  Speaker 3: four point seven percent. That takes us right back to
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  Speaker 3: where we were a younger, So that's a bit of
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  Speaker 3: a hurdle in terms of borrowing our shoe market. We've
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  Speaker 3: seen the US shoe marker down was down again on
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  Speaker 3: Friday night about point six fIF percent, down three point
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  Speaker 3: six percent since their action statup. We're locally we're down
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  Speaker 3: about four and we're seeing a sixty level of things
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  Speaker 3: like energy utilities, consumer stable. They're doing okay. The ones
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  Speaker 3: that are week at Industrials, Materials, consumer discrition.
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  Speaker 2: Right, can the market settled down? Do you think if
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  Speaker 2: the conflict continues.
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  Speaker 3: Well, we might continue to see a bit of de
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  Speaker 3: risking until we understand the scope and the breadth of
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  Speaker 3: the action. If we look back at what happened with
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  Speaker 3: the Russian invasion of Ukraine, we saw this early on
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  Speaker 3: shock and then it took us a little while to
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  Speaker 3: stabilize as we understood the scope of the actions and
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  Speaker 3: we really understand what that meant for supply chains. But
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  Speaker 3: you know, while US and Irana looking for our friends
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  Speaker 3: and the new team, is this balance between opening up
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  Speaker 3: the Straits or meres and the risk of internationalization. So yeah,
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  Speaker 3: a lot going on there.
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  Speaker 2: And so the markets today a bit of a week's start,
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  Speaker 2: but they started to trade a little bit better.
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  Speaker 3: What happened, Yeah, you're bang on. We started with a
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  Speaker 3: really weak start. The brient oil price rose three point
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  Speaker 3: three percent on the open heading about one oh six
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  Speaker 3: fifty one hundred six US fifty year barrel. After this
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  Speaker 3: cave island bombing by the monetartabits by the US and
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  Speaker 3: then it's falling back of the days round one four five.
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  Speaker 3: Right now, the uranium. Foreign minister are ash from Monockoly
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  Speaker 3: his name right here. Their soule Eier came out and
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  Speaker 3: saying that, hey, look, the Straits are only closed to
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  Speaker 3: our enemies. It's open to the good guys. Mister Trump's
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  Speaker 3: out there steering things up. He's saying Aron really wants
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  Speaker 3: to do a deal that but he's prepared to hit
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  Speaker 3: cat on and again and he's going to delay some
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  Speaker 3: up with Chinese president if mister g doesn't send ships
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  Speaker 3: to help out in the golf as well. So we
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  Speaker 3: actually saw a New Zealand she make it down about
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  Speaker 3: zero point two percent, not head of a lot today,
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  Speaker 3: I like training. It was down about a half percent
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  Speaker 3: at one stage. And as we speak, we're actually seeing
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  Speaker 3: the US futures market this is the indication of what
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  Speaker 3: must up about half a percent, and European teaches up
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  Speaker 3: about point three percent. So the market's trying to read
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  Speaker 3: through and say we might have seen the worst.
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  Speaker 2: Ye interesting, Hey, thank you very much. Shane has always
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  Speaker 2: talked you next week Shane Sley Harbor Asset Management.
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