Stocks Struggle After Syria Air Strike

European stocks struggled for direction but U.S. equity futures pointed higher and havens retreated on anticipation that the fallout from missile strikes in Syria will be limited. Crude oil dropped.

Losses for food and beverage shares offset gains in leisure companies in the Stocks Europe 600 Index as the aftermath of the military action was assessed. Gold, a proxy for haven demand, fell with Treasuries. The dollar was steady as CFTC data showed hedge funds are the most bearish on the greenback in five years. The yen edged up as polls showed falling support for Japanese Prime Minister Shinzo Abe’s government. WTI oil futures fell back below $67 a barrel amid concern that production will rise further, and after no significant response to the missile attack.

“There was a significant fear of potential escalation; that hasn’t happened so far,” said Callum Henderson, a Eurasia Group managing director in Singapore. Even so, “it remains to be seen how long this market rally lasts on the back of this specific factor — whether or not, or when, Russia retaliates,” he said on Bloomberg Television.

U.S. President Donald Trump declared “mission accomplished” via Twitter on Saturday, a day after the U.S., France and the U.K. launched military strikes in response to Syrian leader Bashar al-Assad’s suspected chemical attack on civilians. While geopolitical concerns linger, with new U.S. sanctions on Russia, the focus this week is back on earnings season in the U.S. and a slew of Federal Reserve officials who are due to speak, including the incoming head of the New York Fed, John Williams.

Courtesy : Bloomberg
Photo : Industry Europe

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