fbpx
Skip to content Skip to sidebar Skip to footer
Advertisement

NEW YORK, N.Y. – Shares in various benchmarks around the world are recovering as the US-Iran issue seems to have died down. London shares are expected to be in the green as the markets open. Meanwhile, US futures and Tokyo stocks are edging higher.

The IG Futures show that the FTSE will open at 7,609.40, around 34.06 points higher than the previous day. The index was down 0.6% or 47.06 points and closed at 7,575.34 on Monday.

The US shares started low on Monday in response to sluggish trading in Asia and Europe. But it was able to buck the trend and went up at the end of the day. The Dow Jones was 0.2% higher at the close. The S&P 500 was also up by 0.4% while the Nasdaq Composite gained 0.6%.

All three indices reached new highs on intraday trading, even though it opened lower.

Market analysts say that there were signs that the abrupt declines that followed last week’s events are abating. The lack of safe-haven buying in treasuries indicate that even though investors were worried by Iran’s reaction, they were encouraged to buy back stocks when gold and oil prices didn’t consolidate.

The geopolitical tension in the Middle East didn’t stop US stock futures, which was near the flatline early Tuesday. Dow Jones futures went up by 37 points, suggesting it will open higher by eight points or more. Meanwhile, futures on the Nasdaq and the S&P 500 remained flat.

Oil prices lost their recent gains early on Tuesday as well. Brent oil was pegged at $68.30 a barrel while the WTI was selling at $62.73 per barrel.

Japanese shares plummeted on Monday, but the lack of retaliation from Iran and US indices recovering overnight helped Tokyo stock to rebound on Tuesday.

The Nikkei 225 gained 1.60% or 370.86 points to reach 23,575.72 at the close. The Topix also ended the day on a high. The index rose by 1.62% or 27.56 points to end at 1,725.05.

The positive showing was helped largely by the precision instruments, real estate, and service sectors.

Stakeholders are still monitoring the situation in the Middle East, especially in the wake of US President Donald Trump’s threatening Iraq with sanctions. The country had passed a resolution that called for foreign soldiers to be expelled from Iraq.

If the status quo is maintained and no major clashes occur between the US and Iran, stock markets around the world would focus on the trade deal’s scheduled signing on January 15.

Leave a comment