Tensions between Israel and Iran flared again, pushing markets into risk-off mode.
Each week, we provide you with the latest news that may impact the market and, consequently, your investments. Stay informed with Compare Wealth Managers. Here’s what investors should know:
Oil & Gold Surge as Middle East Tensions Escalate
Tensions between Israel and Iran flared again, pushing markets into risk-off mode. As reported by Reuters, Brent crude rose nearly 4% on supply concerns, while gold surged past $2,390 amid renewed safe haven demand.
Investment Implications:
- Heightened geopolitical risk: Driving investor appetite for commodities and defensives
- Diversification: Into oil, gold, infrastructure and non-correlated alternatives is back in focu
- Energy equities and hard assets: May offer selective opportunities for HNW investors
Tax Reset on the Horizon, Time to Review
The Financial Times reports that proposed changes to capital gains tax, non-dom rules, and VAT on private school fees are prompting many affluent individuals to reassess their structures.
Investment Implications:
- Act Now on Structuring: H2 tax planning urgency is growing, particularly for trusts, wrappers, and offshore holdings
- Diversify Geographically: Cross-border diversification may help reduce exposure to UK-specific risk
- Prepare for the Budget: Proactive restructuring ahead of the next Budget could preserve long-term efficiency
HS2 Delayed: What It Signals for UK Investment Confidence
According to The Times, the HS2 rail project has been delayed again, now not expected until after 2033, with costs exceeding £80 billion and significant route reductions.
Investment Implications:
- Credibility Concerns: Long-term infrastructure credibility in the UK is under pressure
- Execution Risk Rising: Public-private partnership risk is rising, with implications for institutional capital
- Capital May Shift Abroad: Investors may increasingly favour more reliable jurisdictions for large-scale projects
Markets Summary (as of 20/06/25)
FTSE 100 Index: 8,793.40, up 27.50 points (+0.31%) (Via: ADVFN)
EUR/USD Exchange Rate: 1.1241, up 0.0015 (+0.13%) (Via: WSJ)
Brent Crude Oil: $75.67 per barrel, up $0.45 (+0.60%) (Via: Reuters)
This brief is intended for informational purposes only and does not constitute financial advice. Please consult a qualified adviser before making any investment decisions.
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