Tensions add to flight to dollar. With Saudi Arabia snapping ties with Iran and with US there is anxiety at turn of events on the geopolitical front. The Middle East, at least at the sub terrain level, seeks some conflagration so that oil prices are increased a shade. Any violence, might instead , add to dollar strengths more . Oil may pick up but not so significantly unless there are clearer signs of supply shortages, which is highly unlikely as of now.
Thus, the USD may not have peaked as yet.. Any small move up in oil prices is good for neutral countries like Qatar, Oman and UAE among the GCC countries. Indo-Pak uncertainties show that economic factors may be a consequence of geo- political tensions.. In a more refined world, economic requirements should destress political tensions but that seems faraway.
Commodity prices might look up a shade but the turn of events seem good for US stocks. Indian corporates are going to see input and import costs a trifling more ; so the Indian stock market should be under some pressure.
This blog recommends no investment. Views expressed are without any risk or responsibility.
Thus, the USD may not have peaked as yet.. Any small move up in oil prices is good for neutral countries like Qatar, Oman and UAE among the GCC countries. Indo-Pak uncertainties show that economic factors may be a consequence of geo- political tensions.. In a more refined world, economic requirements should destress political tensions but that seems faraway.
Commodity prices might look up a shade but the turn of events seem good for US stocks. Indian corporates are going to see input and import costs a trifling more ; so the Indian stock market should be under some pressure.
This blog recommends no investment. Views expressed are without any risk or responsibility.
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