SYDNEY: A huge amount of Asian shares has been removed despite an 18-month of consistent performance despite gold has hitting its all time high in 7 years. Oil prices also saw its best prices in 4-months.
The current state of affairs between Iran and America are on a dramatic stage affecting the global stock and commodities market. Investors are scared for the safety of their gold as the share market saw a sudden rise in gold reaching its highest prices in 7 years. Crude oil also increased and investors saw the best prices in 4 months.
Amid the attacks last Friday on Iran’s top military general Qasem Soleimani who was one of the most influential government officials in Iran the share market toppled. Although the prices are in favor of investors a huge number of Asian companies withdrew their shares as they are scared for the safety of their shares.
The risk of a further rise in prices is likely to happen according to global economists. This change in the market is mainly due to Iran-America tensions as the supply of crude oil and gold can be affected due to regional tensions. The current market situation is as follows:
Brent crude moved $1.58 to $70.18 a barrel, while U.S. crude CLc1 climbed $1.17 to $64.22.
Spot gold increase $51.23 to $1,575.68, reaching an all-time high in 7 years from April of 2013.
“Geopolitical tensions look like remaining elevated in the coming days, so lending support to oil prices and keeping risk asset markets on the defensive,” said Ray Attrill, head of FX strategy at National Australia Bank.
Japanese and Chinese stock markets opened red and a decline was seen on a number of different indices. The withdraw was 0.7 percent alone from the Japanese stock market as Japan holds massive amounts of foreign assets.
The currency market also saw a few changes, every other major currency except the dollar saw rise and fall. AUS and NZD continued a fourth straight session of losses.
Read more: Economy in 2019 stabilised under PM’s leadership: PTI Senator
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