Oil Rises on Syria Conflict Stocks Drop

The prospect of Western military action against Syria hit emerging market assets hard, pushed oil to a six-month high and sent world shares sliding for a second day on Wednesday.

In the scramble for safety investors turned to gold, which hit a 3-1/2 month peak above $1,430 an ounce, and bought the dollar on a view that it was the ultimate refuge from the risks of intensified upheaval in the Middle East.

Emerging markets, such as Syria’s neighbor Turkey, already being pummeled by an expected reduction in U.S. stimulus measures, took further hits. The Turkish lira and India’s rupee both touched record lows against the dollar.

The moves stem from signs the United States and its allies are gearing up for a strike against President Bashar al-Assad’s forces, blamed for last week’s chemical weapons attacks, which traders fear could prompt retaliatory action, engulfing a region which supplies a third of the world’s oil.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza