Multi Asset Strategy Daily

Escalating conflict in the Middle East has pushed Brent crude above $105, complicating the inflation outlook as markets await a US CPI print expected to rise to 3.7%. Global rates curves are bear-flattening, with Gilts especially vulnerable due to additional domestic political turmoil.

Key Takeaways

• 1.Middle East geopolitical escalation is driving Brent crude above $105/bbl, raising concerns about second-round energy effects on global inflation.
• 2.US CPI is expected to accelerate to 3.7% YoY, with markets focusing on core inflation persistence and energy cost pass-through.
• 3.UK Gilts are underperforming due to a combination of energy-driven inflation and intensifying domestic political instability regarding leadership.

Table of Contents

• USD
• EUR
• GBP
• JPY

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