Hopes for diplomacy rise in global markets
Global stock markets are rising this morning on hopes that diplomatic efforts could halt the conflicts in the Middle East.
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US President Joe Biden, who is set to visit Tel Aviv on Wednesday, is expected to send a message of unity with Israel. Delivering humanitarian aid to civilians in Gaza was on the agenda for US Secretary of State Antony Blinken, who met with Israeli Prime Minister Benjamin Netanyahu. In light of all these developments, global markets have entered a period of expectation that tensions will ease.
Wall Street indices, which finished the day with gains of over 1 percent on Monday, are slightly down in futures trading for the new session. Asian stock markets are in the green.
While diplomatic initiatives support a shift toward riskier assets, gold is falling for the second consecutive day. The Bloomberg Dollar Index entered the new trading day flat after declining 0.4 percent on Monday.
In the clashes between Israel and Hamas that have been ongoing since October 7, at least 1,400 Israelis and more than 2,700 Gazans have lost their lives so far.
US President Joe Biden plans to visit Israel on Wednesday to send a message of unity with his country's closest ally in the Middle East and to prevent the escalation of conflicts in the region. The two leaders are expected to discuss the delivery of humanitarian aid to civilians in Gaza and the creation of safe zones for civilians.
US Secretary of State Antony Blinken, who went to Tel Aviv on Monday, held a meeting with Israeli Prime Minister Benjamin Netanyahu that lasted 7.5 hours.
Blinken stated that Biden's visit would take place at a "critical time for Israel, the region, and the world." Blinken said that Israel has agreed to develop a plan with the US that "will enable humanitarian aid from donor nations and multilateral organizations to reach civilians in Gaza" as soon as possible.
Blinken said, "If Hamas in any way blocks humanitarian aid from reaching civilians, including by seizing the aid itself, we will be the first to condemn it. And we will work to prevent it from happening again."
Israeli Defense Minister Yoav Gallant told Blinken that his country is preparing for a long and costly war, but that they believe they will win this war.