Markets were fairly calm on Tuesday while traders kept an eye on developments in the Middle East tension
07 January 2020 - 18:52The JSE recovered along with Asian markets on Tuesday as investors reassessed the ongoing tension between the US and Iran.
“As we've seen plenty of times before, investors have a remarkable ability to move past major geopolitical shocks rather quickly. Ultimately, every sell-off on the back of one of these events is just an opportunity to buy a dip. As long as it’s not followed with a rapid retaliation and escalation, which this has not,” said Oanda senior market analyst Craig Erlam.
This pushed the price of oil to its highest level in more than seven months on Monday. According to FXTM senior research analyst Lukman Otunuga, geopolitical tension may not be enough to sustain an oil rally in the medium to long term. “Although geopolitical shocks could offer a short-term boost, developments revolving around the US-China trade talks and global growth remain the primary drivers influencing oil’s outlook.” is evaluating 13 possible options to avenge the US attack.
The R2030 government bond was weaker with the yield rising half a basis point to 9.05%. Bond yields move inversely to their prices.
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