Latest news with #InteractiveInvestor
Telegraph
3 days ago
- Business
- Telegraph
‘I moved my £400k pension into cash – now I'm worried it's losing money'
Would you like Kyle to rate your portfolio? Email money@ with the subject line: 'Rate my portfolio'. Please include a breakdown of your portfolio, your age and what your investing goals are. Full names will not be published. Dear Kyle, I turn 60 in January and retired last month. In May 2024, I decided that I wanted to retire sooner rather than later and got scared of my pensions losing value in the short term, so I moved all the funds into money market funds. I have a self-invested personal pension (Sipp) with Interactive Investor valued at £400,000, and it is all invested in the Royal London Short Term Money Market fund, apart from £12,000 in Carnival shares that it wasn't worth selling since I'd made such a loss. I also have £583,000 with Standard Life in their money market fund. I have enough funds from the sale of my business to last about four years without needing to touch the pensions. I'm fearful of a market crash and losing a big chunk of my retirement pot. On the other hand, I'm conscious that in real terms my pensions are probably losing money where they are. Can you help? Thank you, – Philip Dear Philip, For those in the final yards of saving towards retirement, the nightmare scenario is seeing their pension pot plummet in value. At the start or middle of an investment journey, there's plenty of time for values to recover. In fact, savers at these stages should embrace rather than fear volatility as monthly pension contributions buy investments at cheaper prices when markets dip. The history books show that markets, such as America's S&P 500 and the UK's FTSE 100, tend to reward patient investors over the long term. However, when your retirement date draws near, the prospect of seeing a pension pot falling sharply can be very unnerving. You've got nearly £1m invested, so even a 10pc market drop, which is not uncommon, would mean your wealth falls by £100,000. Therefore, your caution is perfectly understandable, and explains you moving your entire pension pot into money market funds. On the risk spectrum, these funds are at the low-risk end, due to them investing in high-quality bonds with short lifespans and making use of other ultra short-term savings instruments offered by banks. By investing in a money market fund, you are trusting a professional fund manager to generate a 'cash-like' return on your behalf. The past couple of years have been an opportune time to consider money market funds due to interest rates rising from rock-bottom levels to a peak of 5.25pc in the summer of 2023. The income that money market funds generate, although not guaranteed, tends to be close to the level of UK interest rates. We're now in a period of falling interest rates, although economists don't think we'll be returning to the days of cheap borrowing. When rates are cut, money market funds will pay less income. That's important to bear in mind in the context of inflation, currently 3.4pc, as the minimum aim of every investor should be to keep their wealth growing in real terms. Another thing to bear in mind is that money market funds are not the same as leaving cash in your account. Not only can any investment fall in value, but the Bank of England has warned that there could be a rush to take money out of cash-like instruments in the event of a market crash, which may affect the pricing of these assets. A downside to having your entire portfolio in money market funds is that returns will be relatively low versus other funds, which hampers growth of the overall pot. Therefore, it's important to take a step back and think about timescale, as well as how you plan to generate an income from your retirement pot. For those looking to buy an annuity, taking risk off the table makes sense. If markets slump, dropping 25pc for example, the annuity income offered will drop proportionately. However, for those looking to keep their money invested in retirement, such as through a Sipp, de-risking makes less sense as your retirement could last for decades. You, for example, have retired at age 60 and could have 30-plus years of retirement. For that timescale, growth assets are the key piece of the jigsaw to position a portfolio for real returns that outstrip price rises. You could still maintain a defensive approach, but by taking on a bit more risk with some of your pension pot, the potential investment returns are higher than just going 'all in' on money market funds. The good news for those looking to achieve a defensive stance, but with potential for higher returns than cash, is that there are plenty of options to consider. Among them are multi-asset funds that invest in both shares and bonds. For those looking for low exposure to shares, Capital Gearing investment trust holds around a third in risk assets, while an even lower weighting is available through Vanguard LifeStrategy 20pc Equity. For those looking for a greater portion in shares, options include Vanguard LifeStrategy 60pc Equity and Artemis Monthly Distribution, which typically holds 60pc in shares and 40pc in bonds. For greater exposure to growth assets, equity income investing has been an effective strategy to beat inflation over the long term. In our Super 60 list, we have a handful of UK equity income options, many of which have yields of around 5pc. Equity income funds provide dividend growth, which bonds and cash don't deliver because the interest payments are fixed. It is growth in income that protects you against inflation over time. Funds that our analysts endorse include City of London, Artemis Income and Vanguard FTSE UK Equity Income Index. There are various safety nets that can also be put in place. One strategy is to have a separate cash pot equivalent to a couple of years' worth of expenditure, which could be held in money market funds. The idea behind this cash pot is to dip into it when stock markets slump to give your investments ample time and opportunity to recover in value. Another tactic for those focusing on income-producing investments is to take only the natural yield, which is the income being generated. Let's say, for example, that your portfolio is yielding 4pc, but you decide to take 6pc or 7pc. In that scenario, when stock markets fall sharply, it's going to be more difficult for your pension fund's capital value to recover afterwards. Whereas, if you only take the natural yield (which for a £1m could comfortably be £40,000 a year by allocating to income-paying stocks and bonds), you're giving the capital much more protection and more of an opportunity to regain value. For income to be paid out, make sure you choose the 'income' units of an open-ended fund or exchange-traded fund (ETF). With investment trusts, the income is automatically paid out via dividends. My final observation, which I assume you are fully aware of but would be remiss of me not to mention, is that the maximum tax-free cash you can take from a pension is usually 25pc capped at £268,275. If the total value of all your pension savings is under £1,073,100 at the point of crystallisation, you won't be impacted, but any excess drawn is taxed at your marginal rate – unless your pensions have tax-free cash protection, or you have a protected lifetime allowance. That's more something to note rather than a prompt to take a different approach, but expert advice here can be worth its weight in gold, helping to use your retirement savings in the most tax efficient way. A regulated adviser can also help with intergeneration planning as passing on wealth may also be a consideration – particularly with changes coming into force from April 2027, which will bring unspent pensions into the scope of inheritance tax. Kyle Caldwell is funds and investment education editor at interactive investor. His columns should not be taken as advice or as a personal recommendation, but as a starting point for readers to undertake their own further research.
Telegraph
6 days ago
- Business
- Telegraph
Self-employed? How to set yourself up with the same benefits as employees
Being your own boss comes with many perks, but the significant downside is that self-employed workers don't have access to the valuable package of benefits that come with being an employee. Staff benefits can include a workplace pension, as well as life insurance, income protection and private medical cover, as well as smaller perks that give you access to wellness packages and discounts for gyms and even groceries. Going solo means you'll either have to miss out on these or foot the bill yourself. However, there are ways you can plug the gap. Here's what sole traders should be doing to access the work benefits they need – without breaking the bank. This guide covers: Pensions Life cover Private medical cover Wellbeing Savings buffer and income protection Perks of an accountant Pensions The self-employed have a reputation for lacking in pension provision. Almost 40pc of self-employed people don't pay into a scheme, according to Interactive Investor. Worse still, 38pc have no pension savings at all, rising to 50pc among under 35s. Ian Cook, an adviser from Quilter Cheviot, said: 'Pensions are complicated and so the easy thing to do is ignore them. But it's important to take control of your own future and start contributing to a pension.'
Daily Mail
14-06-2025
- Business
- Daily Mail
Interactive Investor review: How good is it for DIY investors and how does it compare to rivals?
Products featured in this article are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence. By In our Interactive Investor review, you can find out whether the investment platform is right for you. Interactive Investor offers general investing accounts, stocks and shares Isas and Sipps and allows investors to choose shares, bonds, funds, investment trusts and ETFs, including ready-made portfolios that do the work for you. It launched in 1995 and is now owned by the investment management group Aberdeen. It's become a popular choice for do-it-yourself investors: Interactive Investor has more than 450,000 customers and manages £70 billion of assets. Interactive Investor's selling point is its flat-fee subscription model, standing out from competitors that charge account fees as a percentage of your investments. It also offers a wealth of help and guidance for investors. We review Interactive Investor's fees, delve into the features offered by the platform, and put its customer service to the test. Flat fees can work out cheaper than rival traditional investment platforms once the value of your investments reaches a certain threshold. Competitive share dealing fee. Separate 'ii Community' app offers social features that are unique among the traditional investment platforms. Fund dealing costs £3.99 but other platforms offer this for free. Lack of flexibility with regular investments, although this is offered for free. Customer service isn't available at the weekend. This is Money's view: Interactive Investor is a great all-round investment platform. Its fee structure stands out for cost-conscious investors who have larger portfolios. > Learn more about Interactive Investor and open an account* You can open these accounts with Interactive Investor: Isa General investment account Sipp Junior stocks and shares Isa Cash savings account (provided by Flagstone, not linked to a regular Interactive Investor account) Why you can trust us This is Money has been covering investing and personal finance since 1999. Read more about how our editorial independence helps make our readers' lives richer. About our writer: Sam is This is Money's Money and Consumer Guides writer. He has more than 12 years of experience covering financial products. He started his writing career at an investment management company, where he wrote about its stocks and shares Isa and Sipp and covered investments and market news. He's been a writer and editor at the Financial Ombudsman Service and was a senior writer in the consumer team at NerdWallet, covering best-buy personal loans. How we tested Interactive Investor I used Interactive Investor to open a Sipp and spent several hours testing its features for this review. I've tested how easy the platform is to use on both desktop and its mobile app. I've searched for and bought investments, looked at the range of educational content on offer and been in touch with Interactive Investor's customer service team. My final assessment takes Interactive Investor's fees into account and determines whether it's a good overall option for the type of investor it's targeting. Here are Interactive Investor's account fees, along with the tier each level falls into: Interactive Investor's flat monthly fee starts at £4.99 for general investment accounts or Isas up to £50,000, this is higher if you add a Sipp as well, fees then step up for pots above £50,000 and £75,000. Interactive Investor also has a 'Super Investor' tier, which is £19.99 a month for an Isa or general account. This is targeted at more active investors, coming with four free online trades a month and a reduced charge for international share dealing. It costs an extra £10 a month to add a pension to this tier. You can add a junior Isa to your plan on the Investor and Super Investor tiers. It's possible to add as many junior Isas as you have children. This is Money's view of Interactive Investor's account fees Interactive Investor's subscription model is unique among the traditional investing platforms, which usually charge a fee as a percentage of the value of your investments. We believe its flat-fee structure is generally more straightforward than a percentage and helps you keep costs down. You just need to check the value of your pot and the type of account to see your annual fee. Unfortunately, this is more complicated than it was, due to the various tiers. Importantly once the value of your investments reaches a certain threshold, Interactive Investor's fees can work out cheaper than other big traditional investment platform providers, as most rivals charge percentage fees. Let's look at an example: Even though we like Interactive Investor's subscription model, there are situations where it will be beaten on account fees, particularly if you have a smaller pot and want to open both an Isa and a pension. For instance, here are example annual account fees for various sized pots invested in both an Isa and a Sipp with the different providers: Annual account fees for example pots in an Isa and Sipp Interactive Investor AJ Bell Charles Stanley Direct Fidelity Bestinvest Hargreaves Lansdown £30,000 £119.88 £75 £90 £105 £120 £135 £50,000 £119.88 £125 £150 £175 £200 £225 £100,000 £263.88 £250 £300 £350 £400 £450 £250,000 £263.88 £625 £600 £500 £1,000 £1,125 It's imperative to do your own calculations when thinking about where to put your money. Compare fees by considering the size of your pot, account type, what you want to invest in and how often you want to trade. Other important Interactive Investor fees In our view Interactive Investor's trading fees are competitive, but investors in funds should watch out for the £3.99 dealing charge. Some other platforms offer this for free. We like free regular monthly investing, but foreign exchange fees are higher than other platforms - watch out for this if buying US or European stocks. Trading fees UK and US shares, funds, ETFs, bonds and gilts: £3.99 Other international shares: £9.99 or £5.99 for 'Super Investors' Dividend reinvestment: £0.99 Regular monthly investing: No charge Foreign exchange fees Between £0 and £24,999.99: 1.50 per cent Between £25,000 and £49,999.99: 1.25 per cent Between £50,000 and £99,999.99: 1.00 per cent Between £100,000 and £599,999.99: 0.50 per cent For £600,000 or more: 0.25 per cent What is Interactive Investor's investment choice like? Interactive Investor offers a full range of investments, including: Stocks and shares Funds Exchange Traded Funds (ETFs) Bonds and gilts Investment trusts You can choose from a huge range of more than 40,000 stocks, more than 3,000 funds and more than 1,000 ETFs. This is on par with other traditional investment platforms, so Interactive Investor gives you more than enough choice to build a portfolio suited to your investment style, risk tolerance and overall financial goals. If you want managed options, Interactive Investor doesn't build and offer its own ready-made portfolios unlike other platforms. Instead it markets 'Quick-start Funds' that are portfolios built by investment management companies Royal London and Vanguard. What is Interactive Investor's customer service like? Interactive Investor's customer service team is generally available from Monday to Friday between 7.45am and 5.30pm. The lack of weekend availability means it falls short of AJ Bell, Fidelity and Hargreaves Lansdown, which are all available on Saturdays. You can access Interactive Investor's help and support in a number of ways. The platform first points you towards its Help Centre, which answers many common questions, including how to add money to your account and how to pay your monthly fee. It's also possible to get in touch with Interactive Investor by phone, which is best for more pressing questions about your account. And while it doesn't list a customer service email address, you can message the team from your online account securely – a service which I tested. How did Interactive Investor's customer service perform? An interesting feature offered by Interactive Investor is the ability to add cash by way of an instant bank payment. The platform touts this as a way of bypassing the need to use your debit card or make slower traditional bank transfers. After linking your bank account, you can select it from the list of payment options to make an instant transfer. Having multiple options to add cash to your account quickly is great for investors. But I was having trouble linking my bank account using the QR code generated by the desktop version of the platform, so I messaged Interactive Investor from my online profile to ask for help. I asked them whether it was a known issue and if there's an alternative solution. Interactive Investor's chat functionality isn't live – you get a notification after you send the message saying it may take the team up to five working days to reply. But I received a reply in less than three hours, which I found to be very helpful. The customer service representative told me they would forward the problem to the IT team. In the meantime, they detailed the ways I could make an alternative payment to my account. I was grateful to have all this information in the reply, rather than being fobbed off to a page on the Help Centre. Another member of the This is Money team is a long-term Interactive Investor customer and has had to call them with questions about holdings, the timing of deals, tax-year end related issues and transferring investments to a spouse. He reports that the customer service team are helpful and knowledgeable and rates it as good. Secure messages: Interactive Investor's chat function isn't instant, but customer service responded quickly What is Interactive Investor's platform like to use? You can use Interactive Investor's platform on desktop and on mobile by downloading its app. I tested: On desktop: setting up a regular investment On mobile app: searching for and making a new investment Setting up a regular investment on desktop I found it straightforward to add a regular investment to a fund of my choice from my account on desktop. When you click 'portfolio' from the menu, you'll see a link for 'free regular investing' that takes you to a page to set up and manage regular investments. You must have cash in your account for regular investments to go through. I added cash to my account using a debit card and set up a monthly direct debit from my bank account. These were both straightforward and explained well with help text. Interactive Investor requests direct debits on the 12th of each month and executes regular investment instructions on the first Wednesday of each month. This means cash will sit in your account for around three weeks before it's invested. While it's straightforward to set up, Interactive Investor's regular investing service is less flexible than the ones offered by other investment platforms. For example, this may not work for your pay date. Platforms including Bestinvest, Fidelity and Hargreaves Lansdown give you the option of setting up regular investments directly to an investment of your choice, skipping the requirement to have cash in your account first. Fidelity also gives investors much more choice around the frequency of regular savings – monthly, quarterly, every six months or annually – and you can choose one of four dates throughout the month for the payment to be collected. Searching for and making an investment on mobile Interactive Investor's mobile app is straightforward to navigate. After you sign in, you'll see a menu at the bottom of your account that directs you to take different actions, for example viewing your portfolio, making a trade or checking the cash in your account ('wallet'). When you click 'trade' you'll go to a screen that allows you to search for investments. To search for an investment, you need to know where you want to invest. The 'research' tab allows you to get inspiration from the latest articles and videos from Interactive Investor's experts. However, I couldn't find Interactive Investor's top investment picks – the Super 60 – in the 'research' tab of its mobile app. Instead, I had to navigate back to its website on desktop to see the Super 60. I could navigate to the Super 60 easily from my account on desktop, so the mobile app could integrate this information better. The 'trade' tab does allow you to see popular markets including the FTSE 100, FTSE 250 and the Nasdaq and the companies that comprise those markets. I found a stock in the FTSE 100 I'd had my eye on. From there it was fast to add cash to my account using the instant bank connection and then make a trade. Interactive Investor charges £3.99 for share dealing for UK and US shares, but this is generally the cheapest of the traditional investment platforms, with a couple of caveats – see more in our comparison to the right. What other features does Interactive Investor offer? If you like social trading features, Interactive Investor has a separate mobile app called 'ii Community'. This stands out as an uncommon feature among traditional investment platforms. Here Interactive Investor is following in the footsteps of newer players like eToro and Trading 212, which have social features baked into their platforms. eToro bills itself as a 'social trading network' rather than a straightforward investment platform. On Interactive Investor's community app, you can: While the downside is that it's a separate app, the community appears lively with a popular group for 'novice investors' having more than 500 members. Social trading: Interactive Investor's community app is a useful extra for investors What is Interactive Investor's research and educational content like? Interactive Investor has a wealth of investment research available for DIY investors including: Super 60: Interactive Investor's list of its top investment picks ACE 40: a list of top picks for sustainable investments Winter Portfolios: a list of stocks that rise each winter, backed by past performance data This type of research is comparable with the information offered by other investment platforms, such as Hargreaves Lansdown's Wealth Shortlist and Bestinvest's Best Funds List. Interactive Investor has also partnered with the independent financial research provider, Morningstar, to plug equities research into the platform. This is useful – for example, I can see from my account that Morningstar has rated the stock I bought for this review as four stars, which means it's undervalued. There are detailed tables you can access based on Morningstar's data too. These include lists of undervalued and overvalued shares, regional outlook reports and US sector outlook reports. A Portfolio X-ray tool lets you drill down into your holdings and performance, although this sort of detail can quickly become complicated. Interactive Investor has a news feed with content written by its experts to help investors stay up to date with the markets. While Interactive Investor's research is good, less experienced investors may find it difficult to know where to start. It's easy to feel swamped by star ratings, tables and graphs. Interactive Investor does have a range of informative guides, podcasts and videos that explain key concepts such as ETF investing and managing investment risk. These are clearly signposted from the desktop version of its website, under the 'learn' tab from the menu. However, they aren't well integrated into your online account, so investors may find them tricky to navigate to. Interactive Investor: This is Money's overall assessment Interactive Investor's flat-fee structure is what makes the investment platform stand out. If you're only just starting to build your portfolio, there may be lower-cost options available. But once your pot reaches a certain size, Interactive Investor's flat fee comes into its own. It means you're charged the same whether the value of your investments are £100,000 or £1million, so it's worth considering how much you could save under this structure. The cheapest platform isn't always the best for you – it all depends on what type of investor you are. For example, if you want to invest in funds or will be making several trades a year, you might want to choose a platform that offers free fund dealing (such as Hargreaves Lansdown) or one that offers free trading credits (such as Charles Stanley Direct). But in our view Interactive Investor is a great all-round platform, especially for the cost-conscious investor. It's competitive in terms of fees yet still offers very good customer service and investment research. While its broader educational content doesn't particularly stand out, its 'ii Community' app is worth looking at. It cribs from newer players such as eToro and Trading 212 and offers investors further value. Compare the best DIY investing platforms Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you. When it comes to choosing a DIY investing platform, stocks & shares Isa, self invested personal pension, or a general investing account, the range of options might seem overwhelming. > This is Money's full guide to the best investing platforms Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts. When weighing up the right one for you, it's important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs. We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide to the best investment accounts. Charles Stanley Direct * 0.30% Min platform fee of £60, max of £600. £100 back in free trades per year £4 £10 Free for funds n/a More details Etoro* Free Stocks, investment trusts and ETFs. Limited Isa, no Sipp. Not available Free n/a n/a More details Fidelity * 0.35% on funds £7.50 per month up to £25,000 or 0.35% with regular savings plan. Free £7.50 Free funds £1.50 shares, trusts ETFs £1.50 More details Freetrade * Basic account free, Standard with Isa £5.99, Plus £11.99 Stocks, investment trusts and ETFs. No funds Free n/a n/a More details Hargreaves Lansdown * 0.45% Capped at £45 for shares, trusts, ETFs Free £11.95 Free Free More details Interactive Investor* £4.99 per month under £50k, £11.99 above, £10 extra for Sipp Free trade worth £3.99 per month (does not apply to £4.99 plan) £3.99 £3.99 Free £0.99 More details InvestEngine * Free Only ETFs. Managed service is 0.25% Not available Free Free Free More details iWeb Free £5 £5 n/a 2%, max £5 More details Trading 212* Free Stocks, investment trusts and ETFs. Not available Free n/a Free More details
IOL News
13-06-2025
- Business
- IOL News
Oil prices soar, stocks slide after Israel strikes Iran
iol Rescue teams work outside a heavily damaged building, targeted by an Israeli strike in the Iranian capital Tehran on June 13, 2025. Israel carried out strikes against Iran early on June 13, targeting its nuclear and military sites as well as residential buildings in Tehran, after US President Donald Trump warned of a possible "massive conflict" in the region. (Photo by AFP) Image: AFP Oil prices soared and stocks sank Friday after Israel launched strikes on nuclear and military sites in Iran, stoking fears of a full-blown war. Oil futures rocketed more than 13 percent at one point, reaching the highest levels since January and reigniting worries about a renewed spike to inflation. Fears of a higher-cost environment sent share prices sliding for a majority of companies across Asia and Europe. Energy majors jumped, however, as despite a pullback heading into the Wall Street open, crude was still up by around 8.5 percent. The dollar jumped, while gold -- viewed as a safe haven investment -- was close to its record high of above $3,500 an ounce set in April. "Global markets are being rattled by an escalation of Middle East tensions," noted Richard Hunter, head of markets at trading group Interactive Investor. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading "Asian markets were the first to react to the news overnight, with (stock market) declines across the board." Europe followed suit, with almost all the continent's stock indices in negative territory nearing the half-way stage. Iran called Israel's wave of strikes a "declaration of war", after the Israeli military hit about 100 targets including nuclear facilities and killed senior figures, among them military chiefs and top nuclear scientists. US President Donald Trump told Fox News he had prior knowledge of the Israeli strikes, which Israel said involved 200 fighter jets. Trump also stressed that Tehran "cannot have a nuclear bomb". Iran's supreme leader Ayatollah Ali Khamenei warned Israel it faced a "bitter and painful" fate over the attacks, while the Iranian military said there were "no limits" to its response.
eNCA
13-06-2025
- Business
- eNCA
Oil prices soar, stocks slide after Israel strikes Iran
Oil prices soared and stocks sank Friday after Israel launched strikes on nuclear and military sites in Iran, stoking fears of a full-blown war. Oil futures rocketed more than 13 percent at one point, reaching the highest levels since January and reigniting worries about a renewed spike to inflation. Fears of a higher-cost environment sent share prices sliding for a majority of companies across Asia and Europe. Energy majors jumped, however, as despite a pullback heading into the Wall Street open, crude was still up by around 8.5 percent. The dollar jumped, while gold -- viewed as a safe haven investment -- was close to its record high of above $3,500 an ounce set in April. "Global markets are being rattled by an escalation of Middle East tensions," noted Richard Hunter, head of markets at trading group Interactive Investor. "Asian markets were the first to react to the news overnight, with (stock market) declines across the board." Europe followed suit, with almost all the continent's stock indices in negative territory nearing the half-way stage. Iran called Israel's wave of strikes a "declaration of war", after the Israeli military hit about 100 targets including nuclear facilities and killed senior figures, among them military chiefs and top nuclear scientists. US President Donald Trump told Fox News he had prior knowledge of the Israeli strikes, which Israel said involved 200 fighter jets. Trump also stressed that Tehran "cannot have a nuclear bomb". Iran's supreme leader Ayatollah Ali Khamenei warned Israel it faced a "bitter and painful" fate over the attacks, while the Iranian military said there were "no limits" to its response. "The big fear for investors is that an escalation to the tensions will not only raise the risk of a prolonged conflict, but it could disrupt Iranian oil production," said Matthew Ryan, head of market strategy at global financial-services firm Ebury. "We suspect that safe haven assets will be well supported in the coming days, as markets brace for additional retaliatory attacks and the possibility of a wider conflict." Ryan added in a client note that "the spike in oil prices... has broader implications, as it could both weigh on the global growth outlook and keep inflationary pressures higher for longer, which complicates the easing cycle among the world's major central banks".
