Markets Moving after Obama’s Iraq Announcement

U.S. futures (DJA) dropped with Asian stocks (MXAP) and Treasury yields fell to the lowest in more than a year as U.S. President Barack Obama authorized air strikes in Iraq and tensions simmered over Russia’s actions in Ukraine.

Futures on the Standard & Poor’s 500 Index dropped 0.4 percent by 10:44 a.m. in Tokyo, while so-called e-mini contracts fell below 1,900. Ten-year U.S. Treasury notes yields fell to 2.3835 percent, the lowest since June 2013, as Obama said the Iraq action is necessary to prevent an act of genocide. The MSCI Asia Pacific Index lost 0.7 percent while the Topix (TPX) index sank 1.4 percent as the yen rallied amid demand or haven assets.

Obama OKed air strikes in Iraq as people flee Islamist militants. Russia has retaliated against U.S. and European sanctions by banning some western food imports, as concern that President Vladimir Putin could invade Ukraine sends global stocks down a second week. China reports on July trade today, with both export and import growth projected to slow.

Bloomberg

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