Middle East Contagion fears jitter markets

Strong economic date coming out of the US recently has supported global equity markets but a sell off in the US yesterday has kicked off a round of selling across the Globe.

The Japanese market finished down 2.4% this morning and the Footsie is currently lower by just over 1% after a negative performance yesterday, mirroring the US.

This is despite bullish comments from  Warren Buffet, legendary US investor, who is ready to spend some of his multi Billion dollar war chest, seeing market conditions as encouraging but that was a few days back.

The rising oil price and effects on so many countries inflation figures is of great concern, though the Chairman of the Federal reserve, Ben Bernanke said yesterday,

"A surge in the price of oil and other commodities, probably won't generate a lasting rise in inflation". 

For now though, with oil testing daily new highs and the Middle East unrest set to play out long term, the market is looking for less riskier investments which is why gold and silver are close to their highs and set to go higher.