Stock market investors are delusional if they think the risks from Iran are gone

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

OPINION: Iran has every incentive to escalate cold war with the United States.

LONDON — Following the United States’s assassination of Iranian Quds Force commander Qassem Soleimani and Iran’s initial retaliation against two Iraqi bases housing U.S. troops, financial markets moved into risk-off mode: oil prices CL.1, +0.73% spiked by 10%, U.S. SPX, +0.19% and global equities GDOW, -0.05% dropped by a few percentage points, and safe-haven bond yields TMUBMUSD10Y, +0.35% fell.

Moreover, the U.S. itself is now a major energy producer, inflation expectations are much lower than in past decades, and there is little risk of central banks hiking interest rates following an oil-price shock.Status quo won’t return Even if the risk of a full-scale war may seem low, there is no reason to believe that U.S.-Iranian relations will return to the status quo ante. The idea that a zero-casualty strike on two Iraqi bases has satisfied Iran’s need to retaliate is simply naive.

Overall, U.S. private spending and growth would slow, as would growth in all of the major net-oil-importing economies, including Japan, China, India, South Korea, Turkey, and most European countries. The price of oil can spike much more than a basic supply-demand model would suggest, because many oil-dependent sectors and countries will engage in precautionary stockpiling. The risk that Iran could attack oil-production facilities or disrupt major shipping routes creates a “fear premium.”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

And this is the article that made me unfollow . Promulgating a cold war with the angle that protest/gay killing, plane shooting down maniacs are in the right? Sad time for American media.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market bubble: Albert Edwards warns traders of dotcom-era errors - Business InsiderA market expert who called the dotcom crash says Wall Street is recycling tech-bubble tactics to justify the record-shattering stock rally — and warns it's creating a 'valuation accident waiting to happen' It’s not going to end well at all.
Source: BusinessInsider - 🏆 729. / 51 Read more »