Geopolitics – rumors of war in Syria and likely Western intervention – dominate the markets, and yesterday's negative close on Wall Street (where the good consumer confidence news was ignored) translated into a heavy fall in the markets Asians. The MSCI Asia Pacifi regional index is falling by 1,9% in the early Japanese afternoon and the Nikkei lost 2,2%, also in relation to the sharp strengthening of the yen (which stands at 97,1 against the dollar). Gold has returned to its role (or supposed role) as a safe haven and has impetuously jumped over 1400, quoting 1416. But it is the price of black gold which, as expected, is mainly affected by the tensions: the WTI has jumped at 111,9 and Brent at 117,1 $/b.
The euro remained unchanged against the dollar at 1,337, while the Australian dollar, at 89,2 against the dollar and 66,6 against the euro, weakened again, as did the Indian rupee, which fell to a new record of 68 against dollar. The geopolitical crisis superimposed on the tensions deriving from the withdrawal of funds from emerging countries, a withdrawal linked to the forthcoming reduction in the pace of liquidity creation in America (tapering by the Fed).
Attachments: Bloomberg – Asian Stocks Drop While Oil Climbs on Syria; Aussie Slips
