After the drop on Monday and a Tuesday session with no big story to end 2019, Wall Street started the year in the best way for the Bulls, as it saw a reasonable rise that put US indices at all-time highs. Largely because of the news about China’s $115 billion stimulus for its economy, notably the financial sector. However, news of the US attack on an Iranian general, Iran’s promise of retaliation and disappointing data from manufacturing activity shattered the optimism that promised to add a few more bits to the stratospheric levels of the US market.
Photo by Mohsen Khorrampour.
But despite the caution that dominated Friday’s session and led to the search for safe haven assets, the only sectors able to escape the red, the motives that led to pessimism are expected to be an incident without major development, as we can verify from today´s mood so far. On the subject of geopolitics Trump’s military action may come as a surprise, however it is not to be underestimated that we have entered the presidential election year in the US and it is curious that the incumbent US president accused, in 2011 and 2012, Barack Obama of wanting to start a war against Iran to be re-elected. Whether it is a coincidence or a propaganda act, the US-Iranian climate of conflict should not spill over into something much more serious, but only worsening the unfriendly relations that already exist between countries, especially after Trump was elected and ” torn “the deal on the nuclear issue reached by Obama.
