It’s wait and see time as the new week soon kicks off
Well, we’ve had the strikes and the fall out is continuing. The big risk for the market was whether the Russians got involved and and started knocking US missiles down. If stories are to be believed, many of the rockets were shot down by Assad’s own defences, and that the sites hit had all been evacuated beforehand. The propaganda machine is firing on all cylinders on all sides so I guess we’ll never know the full story. But, Russia stood back, it seems, and that will possibly help calm markets, although we’re far from out the woods on this Russia vs the World issue.
Here’s some of the headlines around the news wires at the moment;
- Russia’s Putin predicts global ‘chaos’ if West hits Syria again – RTRS
- Boris Johnson raises alarm on Russian revenge attack after Syrian strikes – Express
- US to impose new sanctions on Russia over Syria as early as Monday – Wash Post
- A Day After U.S. Airstrikes in Syria, Assad Launches New Onslaught Against Rebels – WSJ
So, as I say, we’re still right in the thick of it and that may keep markets from showing any real risk rebound at the open. On Friday, I didn’t think markets would react too much if they had time to dwell on the facts over the weekend, and if the Russians stayed out of it, and I still think that’s the outcome we’re likely to get in an hour or so. I see no reason for any big sell off’s nor for any bounces but we’ll all have to wait and see what happens as the interbank markets set the moves before the retail platforms open. At most, we might see any pre-weekend protection trades unwound but what will be will be I’m afraid.
Good luck for the new week ahead folks.