Iran appears “appears to be standing down”

Daily Analysis - 09/01/2020

The U.S President stated that he believes Iran eased its aggressive tone


The United States President Donald Trump announced yesterday that Iran “appears to be standing down” following the launch of several rockets toward American targets in Iraq in punishment for the U.S. assassination of Gen. Qasem Soleimani. However, Trump said that the U.S. is renewing its options, and will “immediately impose additional punishing economic sanctions on the Iranian regime”. The U.S. President also cautioned Tehran frequently to drop its nuclear goals, declaring: “As long as I am the president of the United States, Iran will never be allowed to have a nuclear weapon.”

But he recommended that the U.S. is willing to start a new round of discussions with Tehran. “We must all work together toward making a deal with Iran that makes the world a safer and more peaceful place”.

The classic safe haven assets retraced

On Thursday the classic safe-haven currencies Japanese yen and Swiss franc retreated while the United States and Iran withdrew from additional friction between themselves, with markets returning to the risk on habit considering the anticipation of a U.S.-China trade agreement.

U.S. President Donald Trump answered overnight to an Iranian strike on U.S. forces with penalties, not force. Iran gave no direct sign that it would retaliate more to a U.S. strike that killed one of its senior military officers. The greenback exchanged at 109.19 yen, bouncing back clearly from a 90-day low of 107.64 yen reached yesterday. The Swiss franc, another safe-haven currency, resulted in a comparable track.


EU stocks seen more bullish


European stocks are set for a higher open today while investor viewpoint increased on the back of softening U.S.-Iran tensions. Britain’s FTSE 100 is seen climbing 23 points to 7,589, Germany’s DAX rising 86 points to 13,400 and France’s CAC increasing 30 points to 6,054. This comes following President Donald Trump's comments from which helped to reduce the confusion over growing pressures in the Middle East.


U.S. futures set for a better open

Thursday morning the U.S. stock index futures moved higher.

At around 2:00 a.m. ET, Dow futures increased more than 40 points, recording a positive open of more than 100 points. Futures on the S&P and Nasdaq in which the two chopped intraday records in the previous trading session moved slightly to higher levels.


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