Global markets that were open Tuesday evening U.S. time were rocked when Iran launched at least a dozen missiles at military bases in Iraq where U.S. troops were stationed. Iran immediately claimed responsibility for the attacks, which is called “hard revenge” for the U.S. killing of its leading military general last week. There were no U.S. casualties. President Trump tweeted “all is well” and said in a speech Wednesday that Iran is “standing down.” It appears Iran did not want to kill Americans which would then likely see a massive U.S. retaliation. Military analysts believe Iran’s missiles are accurate enough to have inflicted more loss of human life if that’s what Iran’s leaders wanted.
As the gold market sold off amid Trump’s speech Wednesday, U.S. stock indexes rallied to session highs and the indexes are now back near their record highs and equity bulls again have upside momentum. Crude oil prices sold off on the U.S.-Iran stand-down and following a weekly U.S. stockpiles report. Crude oil prices spiked to a nine-month high of $65.65, basis Nymex crude oil , overnight, but are presently trading sharply down, at around $60.00.
In other news Wednesday, the U.S. ADP national employment report for December came in stronger than expected, at up 220,000 jobs versus expectations for a rise of 150,000. The ADP report is a precursor to the more important jobs report from the Labor Department that is due out Friday morning.
Please note-Fresh geopolitical risks will be appropriately priced into relatively fairly priced havens (there’s a rethink around negatively yielding European debt undermining their safe haven role) and global markets are only fully 'back to school' next week