Global markets are reacting sharply to escalating geopolitical tensions in the Middle East. The reported death of Ayatollah Ali Khamenei and the effective blockade of the Strait of Hormuz triggered a powerful flight into the US dollar and gold. Energy risks are rising, increasing inflation uncertainty globally. The US ISM Manufacturing Index is a key short-term catalyst. Central banks now face a complicated backdrop of inflation pressure and geopolitical instability. […]

In the first week of March, traders will be digesting a mix of global data — from manufacturing and services indicators to labor market snapshots and Treasury auctions. After a relatively quiet start to the month, focus will sharpen mid-week when services sector activity and payroll trends come into spotlight. Meanwhile, central bank communications and global financial policy discussions, such as those at the OECD Financial Markets Week in Paris, […]