Investors brace for more stock-market volatility, as wild first quarter ends with biggest rally in a year

Markets have been turbulent over the past three months, and ongoing uncertainty around the conflict in Iran raises the likelihood of continued volatility and commodity (notably oil) price swings. Expect potential market-wide moves and elevated risk premia; portfolio managers should reassess risk exposures, consider hedging energy- and FX-sensitive positions, and monitor flows and volatility indicators closely.

Analysis

Markets have been turbulent over the past three months, and ongoing uncertainty around the conflict in Iran raises the likelihood of continued volatility and commodity (notably oil) price swings. Expect potential market-wide moves and elevated risk premia; portfolio managers should reassess risk exposures, consider hedging energy- and FX-sensitive positions, and monitor flows and volatility indicators closely.