Market Brief: Investors Dumped Safe Haven Assets; Nikkei 225 and Asian Indices Rebound
Asian indices and Nikkei 225 jumped today as the tensions between Iran and USA ease. President Trump in a statement signalled that it would respond to Iran’s missile attack with sanctions and not violence. Investors cheered the de-escalation in the conflict between Iran and the USA and dumped safe-haven assets such as gold, silver and Yen.
In Wall Street main benchmarks reversed early losses and finished higher. The Dow Jones closed up 0.56% at 28,745. Nasdaq was 0.67% higher at 9,129 hitting fresh record highs. S&P 500 also finished higher gaining 0.49% at 3,253.
Nikkei took Wall Street’s lead and finished 2.31% higher at 23,739. Hang Seng is 1.37% higher at 28,468, while the Shanghai Composite ended 0.91% at 3,094. In Australia the ASX200 added 0.83% at 6,874 close to all-time highs.
Traders run away from Yen as the war drum ease and the USDJPY hit weekly highs at 109.28. Crude oil price returned to levels ($59.65) it was before the killing of the Iranian General Soleimani last Thursday. Gold retreated over 60 dollars from the highs at 1,611 that hit during the Iranian missile attack and now trades below$1,500.
In our forex calendar we have the Eurozone November unemployment rate due at 10:00GMT analysts forecast a 7.5% reading. From United States the Initial Jobless Claims and Continuing Jobless Claims will be out at 13:30GMT. The Canadian Building Permits (m/m) will be released at 13:30GMT.
In our central bank calendar, Fed Vice Chairman Clarida will deliver a speech at 13:00GMT and FOMC Member Kashkari speaks at 14:30GMT.