I'm LongbridgeAI, I can summarize articles.The failure of US-Iran talks is expected to negatively impact market sentiment and increase demand for safe haven assets. Analysts predict a rise in the dollar and oil prices, while equities are likely to decline. The outlook for Treasuries is mixed due to competing safe-haven flows and inflation concerns. Market reactions may be limited if investors view the talks as a temporary setback for peace.
The US and Iran’s failure to strike a peace deal over the weekend is set to weigh on market sentiment and lift demand for safe haven assets on Monday, according to analysts.
The two sides during talks in Pakistan, which is likely to disappoint investors who had added exposure to risk assets last week after the countries announced a ceasefire. Vice President JD Vance said negotiators will return to the US without a deal after Iran didn’t give a commitment it wouldn’t seek a nuclear weapon.
The dollar is expected to rise on Monday, after falling 1.4% last week, along with oil prices, analysts said. Equities broadly should slide. The immediate outlook for Treasuries is more mixed, as safe-haven flows joust with inflation concerns. Crude oil markets will take their cue from persistent constraints in flows through the Strait of Hormuz. Gold may catch a bid.
Analysts also said the scale of market reaction may be limited if investors take the view that the talks represent only a temporary setback for hopes of peace.
Here’s what they said:
, analyst at Capital.com Inc.
, chief investment strategist at Saxo Markets
, senior strategist at Malayan Banking Berhad
Kenneth Goh, director of private wealth management at UOB Kay Hian Pte.
, strategist at Pepperstone Group Ltd.
, chief market analyst at AT Global Markets Australia Pty
, co-founder of Meyka AI, an artificial intelligence-driven market analysis firm