War, what is it good for?
• Conflict concerns. Risk sentiment negative. Oil prices higher. Equities lower. USD edging up. AUD & NZD on the backfoot. AUD ~4.7% from its March peak.• Global economy. More volatility likely. Impact on world economy from energy supply shock still in the pipeline. Cyclical/growth-linked assets under pressure. Global Trends Middle East related nervousness kept sentiment negative at the end of last week. Worries the conflict (which is now in its 5th week, and showing no signs of improving) will generate a “stagflationary” environment for the world economy (i.e. higher inflation and slower growth) are front of mind. The Strait of...