Nawras Hafez, market strategist at the "Trader Factory" academy, said that the political change in Britain will not quickly reflect on the performance of the economy or markets, expecting its impact to remain limited until the government announces its economic plan and growth stimulus mechanisms, amid continuing inflationary pressures suffered by British citizens.

Hafez explained, in an interview with "Al Arabiya Business", that the ongoing geopolitical tensions boosted demand for the US dollar as a safe haven, although this support remains limited, noting that investors are focusing on the possibilities of expanding the scope of the conflict more than on current military developments.

The dollar rises as the conflict between America and Iran escalates

He added that markets are dealing with military operations as being limited in time and targets, which explains why oil prices remain near $80 levels and did not rise much higher, with investors continuing to monitor any escalation that could change the landscape.

He pointed out that the rise in bond yields reflects a decline in bets on interest rate cuts during the current year, which puts pressure on consumption, while precious metals came under pressure related to the need for liquidity, but the limited declines indicate the formation of a base that could allow gold and silver to rise again if tensions ease.

Regarding US stocks, Hafez confirmed that the results of major banks were positive, especially in mergers and acquisitions and initial public offerings, but they also carried signals of concerns about a slowdown in consumption during the second half of the year due to continued inflation.

He believes that US stock indices still have an opportunity to achieve additional gains supported by the strength of the economy and the momentum of the technology sector, if geopolitical risks decline, but he stressed that volatility will remain the most prominent feature of markets in the short term until the course of the crisis in the Strait of Hormuz becomes clear.

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