06 January 2020 (8:40 am IST)
05 January 2020 (10:10 pm EST)
All equity numbers in world stock markets are leading low as the war of words between the US and Iran continued over the weekend.
Investors are taking money out from stocks and running to safe havens like gold and bonds. Smaller currencies are dropping against the dollar. In commodities markets, gold futures are already up by 1,75%. Oil prices are piling up gains and are up by more than 2% today, after jumping 4% on Friday last.
In stock markets, its red all around. Opening after a long holiday, markets in Japan are down by 2%. Other major Asian stock markets are also trading negative. SGX Nifty is down by 40 points, indicting a lower opening for the Indian stock markets.
US and European stock futures are suffering big losses, showing that these markets will have another negative session.
For day trading, traders should not even think of buying or going long in such markets conditions. It is all “sell on bounce” because the intraday negative trend is generated by serious geopolitical tensions. Only cordial words from all involved nations will soothe markets and bring normalcy back.