Deutsche Bank has released a market performance analysis covering late February through last Friday, showing sharp divergence in asset classes amid ongoing geopolitical conflict. Oil prices surged significantly during the period as energy markets priced in supply disruption risks, while artificial intelligence-related equities also posted strong gains despite broader market weakness.
The analysis reveals bonds experienced notable declines as investors reassessed safe-haven allocations, while most European equity indices fell under pressure from conflict-related uncertainty and energy cost concerns. Precious metals, traditionally viewed as crisis hedges, surprisingly moved lower during the timeframe, suggesting investors favored liquid assets and specific sector plays over conventional defensive positions.
The performance split highlights how current market dynamics differ from historical conflict patterns, with sector-specific opportunities in energy and technology outweighing traditional flight-to-quality moves. European markets bore the brunt of selling pressure given their proximity to conflict zones and energy supply vulnerabilities.
FXnCO Insight
Traders should watch energy volatility and AI momentum trades while remaining cautious on European equities, as traditional safe-haven correlations are breaking down in this conflict environment.
Source: FXStreet