Investors looked forward to Donald Trump’s speech and they seem to like it. The S&P 500 skyrockets from shy increases of 0.1% to gains of 0.6% after the words of the US president, recovering historical highs, while Nasdaq gains 0.7% and Dow Jones rises a 0.66%. In turn, the oil strengthens its correction on Wednesday, with Crude futures falling almost more than 4.5% and Brent leaving another 4% to $ 65 per barrel.
The Republican announced in a speech to the nation sanctions against Iran, confirming with everything an outrage by stating that “it seems that Iran is retreating and that is good for the world.” “The days of Iran’s destabilizing behaviour are over,” the US president added, pledging to prevent Tehran from becoming a threat “to the civilized world” if it develops its nuclear program. The president also excused the murder of Qasem Soleimani last week, claiming that the general “was a terrorist.”
In the early hours of Wednesday, the markets had re-activated the ‘risk off’ in the early hours of Wednesday, after Tehran bombed two US bases in Iraq: the Hang Seng fell 0.83%, the Nikkei fell 1, 57%. Crude oil, in turn, shot up 3% in the first movements of the session.
However, as the European stock markets opened, everything relaxed: the Eurostoxx 50 has closed at a rise of 0.25%, while the Ibex 35 has advanced 0.16%. Before Trump spoke, in fact, Wall Street also shrugged, with the S&P 500 advancing 0.16% in the first movements of the New York day. In this context, crude oil already fell more than 2% before the words of the Republican.
All this happens after several days of tension in the markets, with investors finding reasons in Iran to collect the benefits accumulated after the ‘rally’ of December 2018 and the stock exchanges giving ground to the advance of oil.