Written by Sakb Iqbal Ahmed and Suzan McGi
NEW YORK (Reuters) -The official risks of investors have kept ready before the reopening of the markets late Sunday, from increasing prospects for the Middle East war to protests at the US level against US President Donald Trump, who threatened more local chaos.
Israel launched a barrage of strikes throughout Iran on Friday and Saturday, saying it attacked nuclear facilities and missile factories and killed a group of military leaders, while it could be a long operation to prevent Tehran from building an atomic weapon.
Iran launched revenge air strikes in Israel on Friday night, with explosions in Jerusalem, Will Aib, the two largest cities in the country.
On Saturday, Prime Minister Benjamin Netanyahu said that the Israeli strikes would intensify, while Tehran canceled nuclear talks stating that Washington was the only way to stop the bombing.
It also seems that Israel on Saturday hit the Iranian oil and gas industry for the first time, as the Iranian government media reported a fire in the gas field.
The strikes struck the risky assets on Friday, including stocks, raised oil prices and pushed the rush to safe havens such as gold and dollars.
Meanwhile, the protests organized by the “No Kings” coalition to oppose Trump’s policies were another possible inhibitor on the feeling of risk. Hours before these protests began on Saturday, an armed man opened a fire officer, as a police officer, on two politicians in Minnesota and their husbands, killing a member of the Democratic Council of Democrats, Melissa Hortmann and her husband.
All three major American stock indicators ended in red on Friday, with a decrease of S&P 500 by 1.14 %. High oil and gold prices. The dollar rose.
“There is no longer more shadow,” said Matt Jerkin, the chief geopolitical analyst at BCA Research. “It is a large and continuous attack.”
He added, “At some point, the procedures carried out by one of them or the other side will lead to the output of oil supplies from the market,” and this may lead to an increase in the aversion of risks by investors.
Any harm to the feeling and willingness to endure risks may limit the near -term gains in the S& P 500 index, which seems to have stopped after a crowd of Sun market resulting from the trade war in early April. S&P 500 exceeds 20 % of its lowest level in April, but it has almost moved over the past four weeks.
“The total risk of the geopolitical situation remains very high for us so that we are ready to return to the market,” said Alex Morris, chief investment official at F/M Investments in Washington.
US stock futures will resume trading at 6 pm (2200 GMT) on Sunday.
https://media.zenfs.com/en/reuters-finance.com/989a274b2f24039186f3b20909e4781d
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