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UBS On-Air: Market Moves

UBS On-Air: Paul Donovan Daily Audio 'Tensions and ignoring tail risks'

15 Apr 2024

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Markets are relatively calm in the wake of events in the Middle East. This may seem peculiar, but markets rarely price in extreme tail risks. Iran indicated it considers the matter concluded. US President Biden has urged restraint. Signs from the Israeli war cabinet suggest a response, but there is no idea of scale. The G7 has been as effective as the G7 ever is, talking about sanctions against Iran without agreeing on action.

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