Financial Markets React to Prospective Ceasefire Between Lebanon and Israel

Financial markets have recently witnessed significant movements, despite the absence of impactful economic data. However, important political developments, notably the nearing agreement for a ceasefire between Lebanon and Israel, have greatly influenced the performance of oil, gold, cryptocurrencies, and the US stock market.

In this context, Israeli Prime Minister Benjamin Netanyahu's spokesman stated that the cabinet would vote on the ceasefire agreement with the Lebanese Hezbollah tomorrow, Tuesday. The spokesman did not provide details on the potential agreement but added that its passage is expected.

Here is an overview of the financial market performance:

Performance of Crude Oil Contracts:

Crude oil contracts experienced a significant decline due to optimism regarding the easing of geopolitical tensions in the Middle East. US crude contracts fell by 2.96%, settling at $69.02 per barrel. In contrast, Brent crude futures dropped by 3.36%, settling at $72.53 per barrel.

Performance of the US Dollar Index:

The dollar index registered a noticeable drop of 0.44%, settling at 107.01 points, amid weakened yields on US bonds across various maturities, as markets await the results of the US Federal Reserve's meeting.

Performance of Gold:

Spot gold contracts decreased by about $89 per ounce, reaching a level of $2,627 per ounce, despite the decline of the dollar index. This drop is attributed to optimism regarding a ceasefire agreement between Israel and Lebanon, which may in turn lead to a reduction in tensions in the Middle East.

Bitcoin Prices:

Bitcoin recorded a decline of 2.85%, reaching a level of $95,215 per coin concurrent with the absence of significant developments impacting the cryptocurrency markets.

Performance of US Stock Indices:

The Dow Jones Industrial Average rose by 0.68%, trading near 44,596.32 points. Meanwhile, the S&P 500 index increased by 0.11%, trading close to 5,975.99 points. Additionally, the NASDAQ Composite Index rose by around 20 points, settling near 19,023.89 points.

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