An uncertain wind blows over European equities this morning following Iran’s attack last night on US targets in Iraq, wounding more than 30 US soldiers. The attack took place as a response to last week’s US air raid which led to the death of Iranian General Soleimani in Baghdad. While the Iranian government quickly confirmed it does not seek any escalation, Foreign Minister Zarif also added the nation will defend itself “against any aggression”.
Photo by Stanislaw Zarychta.
These rising geopolitical tensions had a strong impact on safe heaven such as gold, silver, Swiss franc and Japanese Yen, however, share markets seem to be resisting the news despite small corrective moves following the opening bell.
All of EU benchmarks are drifting slightly lower today, with the OMX-30 in Stockholm registering the worst performance so far. The DAX-30 index registered a rebound over the 13,105pts-13,115pts zone in early trading as there remain plenty of bull traders over the 13,100pts zone. However, a break-out of this level could drive prices back to 13,080pts and 13,065pts very quickly. That move could be sparked by the Trump administration’s response to the Iranian attack, depending on the tone Donald Trump will adopt during his speech expected later today.
