Trump Sparks Huge Market Reversal
In his highly anticipated statement on last night’s Iranian missile attack on US positions in Iraq, President Trump announced further sanctions would be put on the country. Markets took this as the confirmation that they had been looking for all-day that the situation will now de-escalate.
The risk-friendly moves that had been the theme of the day (gold, crude, JPY and bonds all weakening and stocks strengthening) were all exacerbated in the wake of the speech. Adding to crude oil’s pain was DoE inventories, which showed an unexpected build in headline crude stocks.