An eagerly anticipated speech from Donald Trump has caused a clear market reaction with the US president choosing to avoid any further escalation between Washington and Iran. The statement was in keeping with his tweet in response to the retaliatory attacks carried out by Iran overnight and for now investors can breathe a big sigh of relief. It may be a little presumptuous to assume this is the end of the matter, with tensions no doubt set to linger but the avoidance of any hints at further military action have calmed the market’s nerves. Wall Street is now closing back in on record highs with S&P futures trading up by 0.5% on the day after falling more than 1.5% during the Asian session. Gold has tumbled as investors sell-out of the safe haven asset while yields on US government bonds have rallied as the markets move back into risk-on mode.
The US500 has responded positively to the speech with the market moving up to its highest level of the day, some 80 points off the lows, and now trades within striking distance of its all-time high of 3263. Source: xStation
Daily Summary: As a ceasefire drifts away, markets lose ground
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Morning wrap: Wall Street gains amid hopes of renewed US–Iran talks🗽
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