Share

Market Falls A Bit In Fear Of Syria

stock-market-downThe world market fell a bit in fears that the USA will have to intervene in the war that has been going on in Syria for a while. If this is the case and USA is going to have to step in, it could mean that there is going to be trouble for the markets. Sellers are getting antsy at the thought at what this could mean for everyone. As reported, The S&P/TSX composite index lost 169.08 points or 1.32 per cent to 12,591.21 with losses limited by gains in gold and energy stocks as geopolitical uncertainty send bullion and oil prices higher.

Advertisement

If this stays the way it is, there market could face a lot of big problems. The US Index was down after John Kerry, US Secretary of State, said that it was undeniable that Syria was using chemical weapons. The Dow Jones dropped Dow Jones fell 170.33 points to a two-month low of 14,776.13. The Nasdaq was down 78.13 points to 3579.44 while the S&P 500 index lost 25.53 points to 1631.25.

Traders have wondering what the markets are going to do about this and it seems that it is taking the turn where everyone is afraid of what to expect. It has always been a problem when you are dealing with a system not so stable all the time, it could spell disaster for a site_1_rand_1857117605_japan_stock_market_down_110311_b_aaplot of things. The stock market has always done this type of thing when it comes to maintaining peace of the traders.

Another area of concern is the price of oil rising more than 15% in the past 3 months. This is because of the unrest in Egypt and now Syria. Metals were down 0.4% and this is just the start of it. The rest of the world markets are falling as well at a steady pace. With numbers like these, many are scared at what could happen in the near future. However, like so many things, there is always a fail-safe for when things happen this drastically.

Advertisement

At the moment, the Fed is buying $85 billion US of financial assets a month so they can lower long-term interest rates. However, up until recently a run of data had ratcheted up expectations. The news of the market falling has put many in a state of fear, but it seems to always work out. Many fear that this is simply another preemptive strike at protecting the markets before the eminent attack on Syria.