BNY MELLON analyst Bob Savage said markets are showing rising fatigue as renewed
U.S.-Iran military escalation, higher yields and hawkish central bank guidance
pressure equities and fixed income. Investors are reassessing the durability of
the global risk-asset rebound. Central banks' growing concern about the
persistence of inf from an energy shock and firmer growth is reinforcing market
expectations of higher-for-longer interest rates. The flare-up has lifted oil,
the dollar and US govt bond yields; supply-disruption risk around the Strait of
Hormuz and shrinking strategic reserves are keeping the energy complex volatile.
