Daily Markets: Has The Flight-to-Safety Trade Ended Already?
The flight to safety trade reversed mid-day yesterday and is continuing this morning even though Bloomberg is reporting Iran considering thirteen response scenarios to the death of Qassem Soleimani. President Trump yesterday threatened 52 sites for retaliation against Iran, including some of cultural significance, and sanctions on Iraq. Mr. Market is back to being unimpressed.
Asian equities closed higher across the board led by the 1.6% climb in Japan’s Nikkei index despite the country’s December Services PMI falling into contraction territory (See today’s Data Download for more). European equities were also higher by mid-day trading and US equities imply a modest positive move when the market opens. Oil futures and gold are both down while the US Dollar index is marginally higher.
Despite yesterday’s negative start,…
