Asia markets thrive despite the fear of geopolitical tension

Oil prices have risen to a report published by the “CNN” network that new US intelligence information indicates that Israel is preparing for the possibility of carrying out a battle for Iranian core institutions. Asian stocks have ascended. Brent rough jumped to exceed $ 66 a barrel. CNN, stating unnamed officials, said it was not yet clear whether the Israeli leaders had made a final decision to implement the strikes. On the other hand, futures for the S&P 500 and “Nasdaq 100” indicators in Asian trade fell 0.1%, reducing some of its previous losses during the day. The Swiss Frank and Japanese yen also rose as a safe origin. Asian stocks rose 0.5%. Geopolitical tension can increase the pressure on the markets that have seen some calm lately, a month after the unrest attacked by customs duties by US President Donald Trump. After US commercial negotiations with China have lived optimism, investors are now looking for indications whether this increase in equities will continue. The S&B 500 index is close to the levels that some technical analysts consider an excessive height. New incentives have written Kyle Roda, the chief market analyst in “Capital.com”: “The markets are thirsty for new incentives that increase the appetite for risk.” He added: “The regular flow of trade related to trade has dropped a lot, and the United States did not show clear indicators about the existence of current agreements or negotiations.” Oil prices have seen major fluctuations since last week as a result of the conflicting news of the fate of Iran and the United States talks, which could pave the way for the return of larger amounts of oil to the market, at a time when a surplus in the offer was expected later this year. Any Israeli attack would disrupt this progress and increase the tension in the Middle East, offering about a third of the global oil supplies. The tension increased the demand for safe assets in early trade in Asia, which caused the dollar index to fall. “The US dollar has lost its brilliance as a safe, secure reserve asset,” said the sparkle of the dollar, Richard Franolovich, head of foreign exchange strategy at Westpack Bank. He added: “These periodic geopolitical disorders will appear more clearly in alternative currencies such as the Yen and Swiss francs in the future.” Morgan Stanley analysts explained that the weakness of the dollar and low interest rates will help Asian stock markets. The ‘Morgan Stanley Asia -Bassvic’ index rose 0.5% on Wednesday, with the support of technology companies such as “Taiwan Simonkon Tiger Maneuvactoering”, and financial enterprises such as the “Mezoho” Financial Group. Meanwhile, Alberto Musalm, president of the Federal Reserve in St. Louis, said that customs duties are likely to tax the US economy and weaken the job market. He explained that the federal is able to deliver a ‘balanced response’ that combines the stability of inflation and the provision of posts, as long as Americans’ expectations of future prices remain within the 2%bank’s goal. The US Treasury effects returned on Tuesday, as upset US budget negotiations emphasize the growing spending and deficit, which the traders asked to strengthen their bets on a further increase in returns. Trump was frustrated by the demands of increasing the maximum deduction of local tax and state tax, according to an official in the US administration, which indicates the possibility of a dead end, at a time when Republicans try to accept a large bill to lower tax. The escalation of US debt is becoming increasingly popular with the bets that expect a sharp increase in the returns of the long -term US treasury effects as a result of the concern of the increase in religion and government deficit. Of the most important of these bets, the expectations of reaching the return of effects for ten years are 5%. In Japan, the government bond market has made a warning to the central bank that reducing bond purchases should be made with great caution. This challenge has been shown this week, as investors prevent them from participating in a government bond auction, which led to a sharp rise in returns, at a time when the market participants were preparing for a bank or Japan meeting, which would discuss the plans to reduce the purchase program.