Due to ongoing conflicts in the Middle East, preference for risk assets has weakened.

In the United States, President Trump delivered a speech to the nation, warning that America will "severely" strike Iran in the next two to three weeks, causing investors' preference for risk assets such as stocks and corporate bonds to decrease. Patrick Munnelly of Tickmill Group said in a report, "The statement has weakened hopes for a rapid resolution of the five-week-old conflict in the Middle East." Munnelly stated that the increased uncertainty surrounding this war and its impact on the global economy and inflation has led investors to avoid riskier investments.