Attacks by Hamas and Israeli air strikes in retaliation have resulted in casualties exceeding 1,000 on both sides.
Israel’s Netanyahu government says it is in a state of ‘war’ and will move to eradicate Hamas.

The question is whether the situation will go beyond this from the fighting between Israel and Hamas? Everyone thinks that Iran is behind Hamas’ actions. If it were to become a full-scale war between Israel and Iran, the situation would escalate quickly.

For now, we can only watch the situation in the Middle East with bated breath. Oil and gold prices are rising and the Eurodollar is falling as a result. It could be said that contingency dollar buying is in order, but the rise in energy prices is a blow to both European and Japanese companies. Moreover, the decline in demand makes it difficult to earn foreign currency from exports.

This is naturally negative for stock prices, but compared to movements in other markets, movements in the Nikkei 225, the NY Dow and others have been extremely slow. We do not wish to see an expansion of the front, but the situation is qualitatively different from the past, and if the front is expanded, especially if Israel and Iran fight, the market impact will be unprecedented.