Bonds , the Japanese Yen and Gold al rose in Asia overnight, while stock markets slipped as investors ran to safe-haven assets after the United States launched cruise missile attacks against an air base in Syria. This attack on Syria raises the risk of confrontation with Syrian backers Russia and Iran.
Previously we had not seen a whole lot of market price action in the past 24 hours, with the US Dollar marginally higher, as are US Bond Yields but by less than one basis point. US equities meanwhile have had a better day than Wednesday, the main Indices up by between 0.07% (Dow) and 0.25% (NASDAQ). This follows what I regarded at the time as a bit of an overreaction to the March FOMC minutes released late in the New York afternoon on Wednesday. The suggestion that the Fed was minded to start the process of balance sheet shrinkage before the end of the year elicited a quite pronounced sell-off in US equities, lower Bond Yields (ironically and seemingly on the view that the Fed might now do less with the Fed Funds rate target) and a weaker US Dollar. This was despite ‘before year-end’ being a date many Fed officials have already referenced in recent commentaries.