Global Markets Experience Risk-Off Shift Amid Geopolitical and Eurozone Fiscal Worries

Financial markets saw a broad risk-off move, with Brent crude surpassing $100 per barrel due to increased Iranian attacks on tankers. Eurozone fiscal concerns intensified for France after the Banque de France governor ruled out ECB intervention, widening peripheral spreads in France and Italy. German yields rose from safe-haven flows, while rate hike expectations for both the ECB and Fed moderated, and equities declined.