Market Brief: Traders Calm Their Middle East Fears

See a summary of the top market themes and trends from today's US trading session!


View our guide on how to interpret the FX Dashboard.

  • After opening lower on fears of continued escalation in the tensions between the US and Iran/Iraq, markets calmed down throughout today’s US session with traders reassured by soothing comments from France and China. That said, most analysts still expect retaliation and another proverbial “shoe to drop” in one form or another.
  • A separate situation to watch will be developments around the planned signing of a “Phase One” trade deal between the US and China next week - China’s Global Times signaled today that “a speedy signing is not of the essence,” raising fears of another potential delay.
  • FX: The British pound was the day’s strongest currency, erasing Friday’s losses entirely. The Japanese yen and Australian dollar were the weakest, though AUD/USD is showing several bullish technical signs.
  • Commodities: Oil finished the day essentially flat after a big rally in the Asian session; gold tacked on 1% and hit an intraday high near $1600 on the tensions in the Middle East
 
  • US indices fought back from early losses to close modestly in positive territory.
  • Communication Services (XLC) was the strongest major sector on the day. Industrials (XLI), Materials (XLB), and Financials (XLF) brought up the rear.
  • Stocks on the move:
    • FAANG stocks led the way higher for broader markets (FB +2%, AAPL +1%, AMZN +1%, NFLX +3%, GOOG +2%).
    • Goldman Sachs (GS, +1%) and Morgan Stanley (MS, -0%) shrugged off news that their financial reporting practices were being investigated by the Bank of England.
    • Retailer Bed Bath & Beyond (BBBY) gained 3% on a WSJ report that the company was selling roughly half its real estate to a PE firm.

*There are no market-moving macroeconomic releases scheduled for Tuesday’s Asian session*


Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.