Why global stocks keep surging despite economic impact of Iran war
Global stock markets continue to surge despite concerns over the economic impact of the Iran war and warnings of a potential recession. The optimism is puzzling, given the dire predictions from the International Monetary Fund and the Reserve Bank.
Global stock markets are surging despite warnings of a recession and the economic impact of the Iran war. The International Monetary Fund and the Reserve Bank have predicted a global recession, but markets have brushed aside these concerns. The Nasdaq, a technology-heavy index, has led the recovery, with investors seemingly ignoring worries about the valuations of technology giants and the impact of artificial intelligence. Meanwhile, consumer and business confidence is plummeting, with Australians fearing the future and experiencing a shortage of fuel. Qantas has cut regional services and forecast an $800 million blowout in its fuel bill, while Westpac is setting aside extra reserves to cover expected late repayments. The Reserve Bank deputy governor has warned of a 'nightmare scenario', but markets remain optimistic.
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