April 14, 2024 (MLN): Israeli stocks fell as much as 1.07% in early trading on Sunday before recovering some of their losses.
The benchmark TA-35 Index traded near 1,922.19, down 0.56% on the day, as the mounting geopolitical tension in the Middle East heightened risk aversion.
Iran’s currency fell to a record low against the US dollar on Sunday. The Rial plunged to as much as 705,000 per USD, a fall of around 4% from the previous day.
Saudi Arabia’s main bourse, Tadawul All Share Index, opened 1.78% lower on Sunday. However, it erased most of its losses and was only down 0.09% as of 04:13pm PST.
Iran launched attack drones and missiles against Israel in apparent retaliation for a strike in Syria that killed top Iranian military officers, taking the conflict in the region into a perilous new phase, as Bloomberg reported.
Cryptocurrencies trade during the weekends, giving investors a window on the potential mood when traditional markets reopen on Monday, though much can change between now and the restart.
Bitcoin reversed course in a plunge that at one point sent it 10% below the previous close to around $60,600, the steepest selloff in more than a year.
This is an early indication of impending volatility across asset markets as investors digest the prospects of a military escalation in the Middle East, said Bloomberg.
The largest cryptocurrency jumped 3.7% to $64,200 as of 04:16pm PST on Sunday after advancing as much as 8.3% earlier.
Market reaction has been relatively muted given Iran telegraphed its response and it was seen as relatively calibrated.
Tehran also indicated it was a “one-and-done” strike.
Iran has no intention to strike Israel again “at this point,” Foreign Minister Hossein Amirabdollahian wrote on X, echoing earlier comments from the country’s mission to the UN saying that the matter could be “deemed concluded.”
