Markets in Wait-and-See Mode Amid Geopolitical Uncertainty

Capital markets are off to a subdued start today, with Japanese markets closed for a holiday. Traders are adopting a cautious stance amid mixed signals from the Middle East after the conflict escalated over the weekend.

Crude oil prices spiked at the open on supply concerns but have since retreated, reflecting uncertainty about the actual impact on global supplies. The lack of clear direction is keeping other asset classes range-bound.

Meanwhile, the composition of the new UK government has been announced, adding a domestic political layer to an already complex global picture. Markets are awaiting further developments for clearer cues.