How safe havens stack up as tech, energy and France fears grip markets

Global markets are experiencing turmoil due to fears surrounding technology, energy, and France, leading to a surge in demand for safe-haven assets. Gold has seen a decline since the onset of the Iran war, as investors move away from assets that have performed poorly. Government bonds, once seen as the safest of assets, have become volatile.

The US dollar has rallied since the Iran war began, up 4% since late February, bolstering its status as a go-to safe haven during times of global stress. Factors contributing to this include a strong economy, higher interest rates, and the US's role as an energy exporter. However, concerns about the dollar's long-term safe-haven status persist due to a massive federal debt load and policy uncertainty.

The dollar might be nearing the end of a bull market, according to Societe Generale chief FX strategist Kit Juckes. Switzerland's franc has emerged as a preferred safe haven when European markets falter, rising over 2% this month. The franc's appeal is attributed to France's fiscal concerns and election uncertainty, as well as its role as a petrocurrency in the context of an ongoing energy crisis.

Despite a tech-driven selloff in stocks, the US 10-year bond yield has hit multi-decade highs, making German government bonds (Bunds) stand out as safe havens among major economies. The Bundesbank President, Joachim Nagel, believes Germany will remain Europe's anchor of stability amid bond turmoil. While high debt among major economies will continue to weigh on long-dated bonds' safe-haven status, short-dated government bonds offer some respite due to their reduced sensitivity to debt worries.