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Conflict on the Red Sea

It appears that the end of the year will not be as calm as we thought it was going to be. Hammas supporting group in Yemen, the Houthis, backed by Iran, are blocking the read sea strait, which is a very important oil trade route. The main objective seems to be hurting Israel, but is affecting global trade as collateral damage, as ships need to go around Africa to get to Europe, instead of using the Suez canal, adding up to 40% costs to the trip. That comes after oil spiked following the Fed comments on #ratecuts, and if sustained, can affect inflation and derail plans for 2024 growth. Markets, however, don’t seem to care that much as equity indices are climbing towards historical peaks, and the S&P500 is on track for a 5% return just on the month of December (6% for Nasdaq). Will this momentum continue on the new year?

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