Fundamental Comment

Optimism fever ends: Stocks fall, haven demand rises


The fever of optimism from the financial markets that we saw yesterday after the Chinese president's talk is over, as stocks are back to the downside and demand for safe haven and alternative investments has returned,

Markets have confirmed that China-US trade negotiations are facing major obstacles after reports said that early talks to avoid a trade war had already collapsed, and that many measures had been taken or under consideration, bringing back fears and tensions.

On the other hand, the markets were negatively affected by the possible military action by the United States and its allies against Syrian President Bashar al-Assad's forces after a suspected gas attack in Syria, a move that could provoke Russia.

The European Air Traffic Control Agency has warned airlines to be cautious in the eastern Mediterranean because of possible air strikes against Syria in the next 72 hours.

Japan's Nikkei 225 Average declined 0.36% to 1392.60 points, and Australia’ S&P/ASX 200 index of Australia was down 0.48% at 5828.68 points.

As for Chinese stocks, they maintained their gains, where the Shanghai index rose 0.56% to 3208.08 points, and the CSI300 index rose 0.29% to 3938.34 points.

Safe haven investments rose, with gold hitting a one-week high of $1345.39 an ounce, while the yen also rose against the U.S. dollar to a top of 106.91.

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