Suddenly, financial markets have become highly volatile, with the escalation of Middle East hostilities and last week’s increased US inflation reading generating tension and uncertainty.
The US dollar is surging and creating dilemmas for central bankers elsewhere.
GUSNOTE: THIS IS NOT SUDDEN... THE WRITING WAS ON THE WALL FOR A WHILE....
Oil prices, already above $US90 a barrel, could go higher and add to the challenges faced by economic managers, depending on how Israel responds to the weekend barrage of drones and missiles.
Gold prices are at record levels despite the strength of the US dollar.