Global Equities were down on Wednesday after geo-political tensions rose amidst President Donald Trump’s warnings to Russia that it plans to send US Missiles to Syria.
The announcement came after a deadly chemical attack on Syrian cities which cause numerous and affected hundreds of children in what is being dubbed as a poisonous gas attack.
The Syrian geo political tensions took limelight from the US – China tensions as the trade war was sidelined after US Donald Trump in one of his tweets made a direct threat to the Russian authorities, who responded by saying that any plane or missile in the Syrian airbase will be shot down.
Trump and US Intelligence has blamed Syrian leader Bashar al-Assad and his Russian ally for the alleged attacks, the White House said later Wednesday.
“The president holds Assad and the Russians responsible for the attack,” White House spokeswoman Sarah Sanders told reporters.
“All options are on the table,” Sanders said when asked about a potential US response. “Final decisions have not been made on that front.”
Major US indices finished down, with the Dow biggest loser, shedding 0.9 percent. Equity markets in European capitals including London, Frankfurt and Paris also fell.
US Fed Minutes released
US Federal Reserve Officials have termed the possible trade war as a downside risk yet upbeat on the inflationary targets and economic growth during the FY 2018. The optimism was visible in the US Fed Minutes released yesterday.
The minutes revealed that Fed officials are relatively upbeat on inflation. Officials are confident that the US economy would pick up in the coming months and achieve the inflation targets.
US benchmark contract West Texas Intermediate for May delivery gained $1.31 to $66.82 per barrel.
Tech giant, Facebook was a positive standout, gaining 0.8 percent as Chief Executive Mark Zuckerberg apologized and parried lawmaker queries on data security in a second day of congressional hearings into a scandal involving user data.
Market Figures around the Globe
New York – Dow: DOWN 0.9 percent at 24,189.45 (close)
New York – S&P 500: DOWN 0.6 percent at 2,642.19 (close)
New York – NASDAQ: DOWN 0.4 percent at 7,069.03 (close)
London – FTSE 100: DOWN 0.1 percent at 7,257.14 (close)
Frankfurt – DAX 30: DOWN 0.8 percent at 12,293.97 (close)
Paris – CAC 40: DOWN 0.6 percent at 5,277.94 (close)
EURO STOXX 50: DOWN 0.5 percent at 3,420.05 (close)
Tokyo – Nikkei 225: DOWN 0.5 percent at 21,687.103 (close)
Hong Kong – Hang Seng: UP 0.6 percent at 30,897.71 (close)
Shanghai – Composite: UP 0.6 percent at 3,208.08 (close)
Euro/dollar: UP at $1.2369 from $1.2356 at 2100 GMT on Tuesday
Dollar/yen: DOWN at 106.80 yen from 107.20
Pound/dollar: UP at $1.4182 from $1.4176
Oil – Brent North Sea: UP $1.02 at $72.06 per barrel
Oil – West Texas Intermediate: UP $1.31 at $66.82 per barrel