FT News Briefing Why markets are unfazed by the Middle East conflict
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Jun 26, 2025 NATO's defense spending is on the rise, signaling shifting priorities. Meanwhile, the Federal Reserve plans to ease capital requirements for major banks, a move stirring interest. Surprisingly, U.S. stock markets remain stable despite the escalating Israel-Iran tensions, raising questions about investor sentiment. The accounting sector is also innovating, with firms gearing up for public market entries, influenced heavily by private equity strategies. Could the unfolding geopolitical landscape and financial evolutions reshape future market dynamics?
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Markets Ignore Middle East Conflict
- U.S. stocks have steadily risen despite the Middle East conflict, showing resilience.
- Markets have historically shrugged off geopolitical tensions in this region, including past U.S. interventions.
Investor Uncertainty Amid Multiple Risks
- Investors juggle many narratives including tariffs and potential Middle East war risks.
- The complex mix makes market reactions unpredictable day to day.
NATO Defense Spending Boost
- Nearly all NATO members pledged to boost defense spending to 5% of GDP by 2035.
- Spain is the lone country opting out, marking a significant move influenced by U.S. pressure.