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6.01 - Middle East tensions is THE thing to watch today

19.02.2019

 

A lot of things have changed since last week. A lot of things have shifted and the situation in the world is moving and changing colors, so to speak. With the whole ordeal in the Middle East it is hard to understand what is waiting for us in the end of the week, so right now we have to live by the day. A good rule, which in trading doesn’t always pay off really.

 

We are waiting for the tensions in the middle East to ease up, but over the weekend the situation only got worse. USA and Iraq have been exchanging with mutual threats for airstrikes and the whole world stood frozen as if too scared to move and provoke either of the sides. But, luckily for the moment nothing has happened. All we can see and feel right now is the effect from these threats.

 

For example, oil. Both of the crudes are growing because of the growing supply fear. And while tensions are here, that is what we are going to get. Surely, we can hope that Iraq and USA are going to find common sense soon, but with Iraq withdrawing from all the nuclear deals, it is getting pretty scary, we have to admit.

 

Surely, this situation is influencing other instruments as well. For example, gold and yen. It is only natural that safe havens should grow and prosper at times like this. Traders want to invest into something that has nothing to do with USA and Iraq business, which is bad news for USD, for example, but yen and gold could really use some growth.

 

What is really feeling the effect of the whole situation is American stock market. Main American players are sliding lower and lower, Even Apple, the stock of which was growing rapidly, doubling last year’s lows on Friday cannot help but feel the outflow of traders from American markets. We really hope that the situation is going to change soon enough.

 

Here are the main numbers for the beginning of the week:

 

Topix decreased 1.4 percent.

Kospi dropped 1 percent.

Shanghai Composite declined 0.2 percent.

Hang Seng from Hong Kong lost 1.2 percent

S&P 500 lost 0.4 percent.

Dow Jones declined 0.8 percent.

Euro was flat - $1.1157.

Pound declined 0.1 percent - $1.3071.

Yen lost 0.1 percent – 107.971 per dollar.

Canadian nudged a little bit higher - $1.2979.

Tesla added 3 percent - $443.01.

Apple slid 1 percent - $297.43.

Facebook lost 0.5 percent – $208.67.

Amazon shed 1.2 percent - $1874.97 per share.

Google dropped 0.5 percent - $1361.52.

WTI grew 1 percent - $64.29 per barrel.

Brent grew 2.3 percent - $70.16 per barrel.

Gold grew 1.6 percent - $1577.4 per ounce.

Silver recovered 2.2 percent - $18.42 per ounce.

Platinum added 0.75 percent – $988.12.