Climbing the wall of worries
Despite simmering geopolitical tension, the reaction of risk assets is, however, extremely subdued. The classic flight to safety was clearly not evident. While the yen registered slight gains (as at time of writing), gold fell. Similarly, West Texas Intermediate (WTI) crude oil price is also down while US futures are pointing to gains on the S&P 500 Index when the market reopens. This suggests that the market is perceiving the US-led air strike as a one-off event at this juncture.
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