The volatile trading continues on the week and it’s tough to hold any intraday convictions. S&P 500 futures were down by as much as 0.5% earlier on but have now climbed back up to pare losses to be up 0.1% on the day.
The only plausible headline I’m seeing that ties closely is one reported by Sky News Arabia, in citing Iran’s foreign ministry as to saying that they might consider abandoning its nuclear program “if the US makes an attractive enough alternative offer”.
Quite frankly, the odds of that are almost nil I would say. We’re already seeing both sides wage a war and Trump is not going to be patient enough to go back to the negotiating table. The gap between both sides were already too wide to begin with. Hence, that has what led us to where we are currently.
As US futures bounce, European indices are also now turning positive with slight gains on the day. The DAX and CAC 40 indices are both up 0.3% currently.
Meanwhile, the turn of the mood is seeing the dollar retreat once more. And there is a familiar kick to it with this being a repeat of what we saw in European trading yesterday as well. EUR/USD is now flat at 1.1630 after trading around 1.1590 at the start of the session. Meanwhile, USD/JPY has also slipped back lower to just below 157.00 after hovering around 157.20-30 levels earlier in the day.
The volatile trading is also permeating through precious metals with silver now up 1.4% on the day to $84.60, after having dropped by almost 4% earlier with the low touching $80.60. Meanwhile, gold is also up 0.7% to $5,171 as traders look to try and hold a second day of gains after the sharp drop on Tuesday.
This article was written by Justin Low at investinglive.com.