Stocks about to sell off: US yields rise, oil price shock threatens - financial expert warns

Stocks about to sell off: US yields rise, oil price shock threatens - financial expert warns

According to a report by www.boersen-zeitung.de,

Current developments on the stock markets are putting analysts on alert as rising US yields, fears of recession and geopolitical conflicts are weighing on the market. The German stock index DAX is already in a correction phase. There is also a risk of a sell-off in stocks, especially if there is an oil price shock. The American technology index Nasdaq Composite and European markets have already recorded significant declines, in addition to the increase in yields, particularly in the USA.

There is a possibility that the intensification of the Middle East conflict will have a negative impact on the returns on safe government securities. One escalation could result in an upward impact on returns, while another development could cause investors to flee to safety, which would in turn lower returns. Key interest rates are expected to remain high due to inflation, which could continue to drive up the yields on safe government bonds.

The possible escalation of the Middle East conflict could lead to a rapid increase in energy costs, which could hit consumer spending and drive up inflation. In addition, there is a risk of outages in oil and LNG production, which could lead to a massive increase in oil prices to $200 per barrel or more.

Given these developments, financial professionals must closely monitor market conditions and prepare for potential impacts. In particular, the development of oil prices and geopolitical conflicts could have a significant impact on the stock market and the financial industry as a whole. It remains to be seen how the situation will develop in the coming weeks and months.