[MARKET UPDATE] Markets see a modest hawkish reaction (stocks, bonds, precious metals down) as another G10 central bank tilts more hawkish amid the energy shock from the Iranian war

The modest hawkish reaction in the markets indicates that traders are adjusting their expectations for monetary policy in light of heightened tensions due to the Iranian war and its impact on energy supplies. This shift may lead to tighter monetary policy from G10 central banks, which is weighing on equities and pushing bond yields higher, suggesting a potential repricing of risk across asset classes, especially in energy-sensitive sectors.