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Trump bombs Syria, Markets react

7
April
2017
News
Fixed Income, Alternative Assets, Equity, news, Global economy, Australian economy, Property

President Trump has just announced he ordered a cruise missile attack against Syria. This is in response to Bashar al-Assad’s poison gas attack that left scores of his own civilians dead. Trump told reporters “Tonight I ordered a targeted military strike on the airfield in Syria from where the chemical attack was launched.” He added that the missile strike was in the “vital national security interest of the United States". The strike took aim at hangars, planes and fuel tanks with Tomahawk cruise missiles, which were fired from two Navy destroyers in the Mediterranean.

This move could potentially change the dynamic in geo-politics which was originally heading toward a cozy Trump & Putin relationship. But Trump's act has shown a different side to this relationship.

Market Reaction

At this stage in the Australian time zone, the Gold & Oil sectors of the Australian Stockmarket have rallied in response.Gold tends to rally on "safe haven" status, and oil has had a boost as their could be potential supply disruptions should tensions deepen.

Other reaction has included the Japanese Yen strengthening, and S&P500 futures weakening.

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