Stock market investors are delusional if they think the risks from Iran are gone

LONDON — Following the United States’s assassination of Iranian Quds Force commander Qassem Soleimani and Iran’s initial retaliation against two Iraqi bases housing U.S. troops, financial markets moved into risk-off mode: oil prices CL.1, +0.73% spiked by 10%, U.S. SPX, +0.19% and global equities GDOW, -0.05% dropped by a few percentage points, and safe-haven bond yields TMUBMUSD10Y, +0.35% fell.

Moreover, the U.S. itself is now a major energy producer, inflation expectations are much lower than in past decades, and there is little risk of central banks hiking interest rates following an oil-price shock.Status quo won’t return Even if the risk of a full-scale war may seem low, there is no reason to believe that U.S.-Iranian relations will return to the status quo ante. The idea that a zero-casualty strike on two Iraqi bases has satisfied Iran’s need to retaliate is simply naive.

Overall, U.S. private spending and growth would slow, as would growth in all of the major net-oil-importing economies, including Japan, China, India, South Korea, Turkey, and most European countries. The price of oil can spike much more than a basic supply-demand model would suggest, because many oil-dependent sectors and countries will engage in precautionary stockpiling. The risk that Iran could attack oil-production facilities or disrupt major shipping routes creates a “fear premium.”

And this is the article that made me unfollow . Promulgating a cold war with the angle that protest/gay killing, plane shooting down maniacs are in the right? Sad time for American media.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US-Iran tensions could benefit China, but not in the way you think'If the current tensions in the Middle East do benefit China, it will be by forcing Beijing to accept the inevitable and act as a global power.' Opinion | RupertStone83
Source: trtworld - 🏆 101. / 63 Read more »

Iran recession to deepen, reserves to fall to $73 billion by March: IIFHit by sanctions curbing oil sales, Iran's economy is set to fall deeper in... Qatar will rescue them, they have promised to support Iran full thrust Expect more plane sinisters. Can’t believe this, such a well run honest country 🙈
Source: Reuters - 🏆 2. / 97 Read more »

Iran threatens European troops but admits protesters 'were lied to''Today, the American soldier is in danger, tomorrow the European soldier could be in danger,' President Hassan Rouhani said. Iran has been using MSM’s hatred towards Trump to manipulate them into becoming their PR machine. Lol after the US officials suggesting the plane was shot down, Iran announced that it was shot down. after people of Iran protesting on the street, Iran admits the people had been lied to. IranAttacks IranProtests IranDeal Tehran protesters are changing “Death to Dictator”, “Death to Khamenee” Shut up Zarif
Source: NBCNews - 🏆 10. / 86 Read more »

Target's stock tumbles after holiday sales disappointShares of Target Corp. tumbled 8.6% in premarket trading Wednesday, after the discount retailer reported disappointing holiday-period same-store sales. The... I would gather not as many transgenders are making purchases in their stores as they had originally forecasted.
Source: MarketWatch - 🏆 3. / 97 Read more »

Stock market bubble: Albert Edwards warns traders of dotcom-era errors - Business InsiderA market expert who called the dotcom crash says Wall Street is recycling tech-bubble tactics to justify the record-shattering stock rally — and warns it's creating a 'valuation accident waiting to happen' It’s not going to end well at all.
Source: BusinessInsider - 🏆 729. / 51 Read more »