Citadel Securities Sees Markets Shifting to ‘Demand Destruction’

Citadel Securities warns the market fallout from the Middle East conflict is entering a new phase as investors shift focus from an initial inflation shock to downside risks to global economic growth. Expect increased risk-off positioning, pressure on growth-sensitive assets and potential downward revisions to near-term global growth forecasts and flows into safe-haven assets.

Analysis

Citadel Securities warns the market fallout from the Middle East conflict is entering a new phase as investors shift focus from an initial inflation shock to downside risks to global economic growth. Expect increased risk-off positioning, pressure on growth-sensitive assets and potential downward revisions to near-term global growth forecasts and flows into safe-haven assets.