US investors quickly shake off Iran’s missile strikes
Iran has retaliated against the United States for its killing of top general Qasem Soleimani by firing more than a dozen ballistic missiles at two Iraqi military bases housing US troops — but for now, investors aren’t showing much alarm.
Markets react: At first, global traders sold stocks, and markets in Asia closed lower. Gold prices leaped above $1,600 per ounce, while Brent crude, the global benchmark for oil, jumped as high as $71.75 per barrel.
But initial reports that there were no US casualties from the attack have since assuaged investors’ fears that the strike will result in yet more escalation.
President Donald Trump tweeted that “All is well!” and said he’d make a press release on Wednesday morning.
The latest: US stock futures have recovered, and Brent crude is back to $68.64 per barrel.
Dow futures recover after Iran retaliates
Investors brush aside strikes on Iraqi bases housing US troops.
“Based on available evidence, this round seems over,” Henry Rome, an analyst at political risk consultancy Eurasia Group, told clients Wednesday. “The US and Iran will likely revert to their usual, tortured relationship moving forward.”
This bolsters the view from many investors that the geopolitical turmoil afflicting markets in recent days will be short-lived.
“Yes, there is a potential that the Iran-US tensions escalate,” Mislav Matejka, head of global and European equity strategy at JPMorgan, said in a note to clients this week.
“But we note that historically war campaigns, also as terrorist incidents, attended have only a transitory and typically limited impact on equities.”
On the radar: A Boeing (crashed in Iran shortly after takeoff on Wednesday morning, killing 176 people.) plane bound for Ukraine
A Boeing spokesperson told CNN that the company is “aware of the media reports out of Iran” and is “gathering more information.” Shares of the plane maker are down 2% in premarket trading.