Escalating conflict in the Middle East was the dominant driver of global markets in early March. The conflict raised concerns that the situation could broaden, particularly given the proximity to critical energy infrastructure and shipping routes such as the Strait of Hormuz, through which a significant share of global oil supply passes and which travel through remains disrupted. 

Global markets were unsettled after reports that US prosecutors had opened a criminal investigation into Federal Reserve Chair Jerome Powell, an unprecedented development that has intensified concerns over the independence of US monetary policy.

1. US driving the sentiment Recent market sentiment has been shaped by evolving US trade strategy, a cooling inflation report, and...