- Trump delays two weeks in Iran bombing decision Uncertainty has been created that prevents investors (and businesses) from making decisions. Despite the decline in the “Fear Index”, the U.S. market is still slightly down in previous market transactions.
Investors are not breathing completely after President Trump postponed the decision to bomb Iran. After more than a dozen holidays, U.S. stock futures fell by about 0.2% across the board, reflecting not only a potential war, but also indecision.
question? Investors did not view the two-week delay as diplomatic opening, which would avoid the biggest catastrophic outcome: bombed Iran blocked critical oil transport through the Hormuz Strait and sent the oil to $130.
Instead, they think it’s kicking the jar on the road. Fear itself is not an escalation, its uncertainty is long and there is no specific solution to it.
“This means two weeks of uncertainty in financial markets, but investors are still inclined to see the Middle East conflict as local rather than global economic issues,” UBS chief economist Paul Donovan said in his morning notes. wealth.
Indeed, although stocks traded in flanks on Friday morning (expired from the beginning of the year) although stocks rose in parts of Europe and Asia (as their year-to-date). Hong Kong’s Hang Seng and India’s Nifty 50 rose 1.3% on the day, while afternoon trading Stoxx Europe 600 and London’s FTSE rose 0.6% while Germany’s DAX rose 1%. The S&P 500 rose 1.7% over the year, while the Stoxx Europe 600 rose 5.6%.
“Middle East tensions represent another potential adverse shock to a fairly weak economy,” Nicola Nobile, chief Italian economist at Oxford Economics, wrote in his comments on the eurozone economy on Friday. “As we have shown, even the worst of oil prices will have a manageable impact on economic activity.”
The difference in emotions boils down to uncertainty.
Trump’s delay reflects a broader model – on tariffs, tiktok (he Another 90-day divestment was signed on Thursday), now it is Iran. The so-called “taco trade” (Trump always chickens out) may be attractive, but for the market, it indicates a lack of clarity that has led to stagnation of executives and investors.
Wall Street’s Fear Scale – surged 7.9% in Thursday’s war conversation. Nevertheless, the year saw an increase of 18%.
Here is a snapshot of the global market action this morning:
- South Korea kospi Increased 1.5%.
- from India Nifty 50 Increased 1.3%.
- The US market was closed yesterday. S&P 500 futures Listing trading today fell 0.2%.
- UK FTSE 100 Noon trading rose 0.6%.
- China’s SSE Synthetic Less than 0.1%.
- Japanese Nikkei 225 0.2%.
- From Hong Kong Hang Forest Increased 1.3%.
