An interesting weekend went through and as it seems, leaders around the world are lashing at each other warnings and threats that makes no effect on the market as of now – but one cannot deny the fact that issues of this sort can generate a future effect that will suddenly reach the markets with no initial warning – this is one of them – https://www.marketwatch.com/story/trump-tweets-all-caps-tirade-warning-iran-never-to-threaten-us-2018-07-22
As the strongest Super Power in the world threatens a once even bigger empire(and one who took control over the chess game…) and one who controls one of the most important gate way’s of Oil – The Straits of Hormuz which is a link the Gulf of Oman to the Indian Ocean and the Persian Gulf . On its northern shore lies Iran, on the southern coast of the United Arab Emirates and the enclave of northern Oman on the Musandam peninsula.
Tension of this sort will definitely have an effect over the stocks market that has been enjoying a positive momentum despite Trade War concerns and the effect of every concern faded away only to make way to bigger concerns with high similarity to what led to Black Monday at 1987 – In finance, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already sustained significant declines. The Dow Jones Industrial Average (DJIA) fell exactly 508 points to 1,738.74 (22.61%). In Australia and New Zealand, the 1987 crash is also referred to as “Black Tuesday” because of the time zone difference. – https://en.wikipedia.org/wiki/Black_Monday_(1987)
Stay tuned and share your opinion below.