Oil Falls After Syrian Concerns Ease With Bonds Rising

Oil prices fell sharply and government bond yields rose on Monday on expectations that the weekend’s missile attacks on Syria would not mark the start of greater Western involvement in the conflict.

European shares were broadly flat, however, adding to a mixed picture in Asian stock markets and suggesting that a degree of caution prevails.

While last week’s bid for investment safety in top-rated government bonds unwound, other traditional havens in times of global political tension held firmer. Gold prices were little changed, while Japan’s yen and the Swiss franc were higher than levels late on Friday.

“There is some relief that a direct confrontation between the U.S. and Russia over Syria has been avoided,” said DZ Bank rate strategist Daniel Lenz after Russian President Vladimir Putin warned on Sunday that further Western attacks in Syria would bring chaos to world affairs.

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