The equity futures in United States, the stocks of Asia and the safe haven assets had all seen a major swing with the escalations in the middle east rattling the markets worldwide.
The attack by Iran on the military bases of Iraq is being seen as a retaliation to the killing of General Qasseem Soleimani by the forces of America in the previous week and has injected new levels of volatility in the assets globally which enjoyed a great year in 2019. The futures had dropped by a level of 1.7% as there were fears of a conflict happening before the statements which had come out of the leaders of both countries which said that they were not looking for an escalation.
The West Texas Intermediate Crude futures had jumped initially by 4.4% wile the there was a tumble of over 1% seen by S&P 500. These moves erased with the signs not being there of escalation from USA’s part.
The Treasury yields for 10 years had dropped over 11 basis points reaching 1.70% before paring a lot of the losses and the dollar swinging against yen. If there is to be more conflict which was there in the middle east, it would send the Treasury yields lower as per the analysts.
There was a rise in gold as it reached $1,600 per ounce which is the highest level it has seen since the year 2013 before it had retreated to their highs.
The Nikkei volatility index had advanced by as much as 4 points. The traders are waiting for more updates to reach a level of certainty before they can begin their activities.