News / Middle East

Markets Trend Lower As Attention Shifts From bin Laden

Multimedia

The impact to financial markets from the death of Osama Bin Laden has been mostly mixed.   Initially, there was a drop in oil prices and a rally in global stock markets.  But most of the gains turned out to be temporary, as investors concluded that the death of the world's most-wanted terrorist is likely to have limited impact on the global economy. 

Nearly 10 years after the worst terrorist attack on U.S. soil, spontaneous celebrations marked the announcement that the world's most-wanted terrorist was dead.

Many New Yorkers were ecstatic. "Elation, better prospects for the future, better prospects for the economy. Definitely a validation of how we are viewed overseas," said one man.

Global markets reflected the jubilant mood.  In Asia, Tokyo's Nikkei jumped more than 1.5 percent on Monday, while the DAX in Germany gained 0.7 percent.


ING senior economist Carsten Brzeski said, "If you look at the Asian market, the European market, there was a clear sign of relief.  Stock markets went up, the dollar strengthened a bit and also the kind of crisis tension indicators: gold price and also oil price came down a bit.  So clearly there was a sign of relief and financial markets a bit celebrating the huge step against the fight of, against terrorism."

But the relief was fleeting. By the end of Monday on Wall Street, the Dow Jones index had fallen 92 points from the day's high.

Robert Halver is a stock trader at Germany's Baader Bank. "Terrorism is a basic fact for analysis in the capital market.  We cannot say the item is all over now after we killed Osama Bin laden.  We still have to face that there is a massive danger even in the next couple of weeks, months and years," he said.

The sentiment caused a spike in volatility.  

Former Securities and Exchange Commission Chairman Harvey Pitt says Bin Laden's death will do little to reduce the terrorist threat. "I believe that the death of Osama bin Laden will prompt retaliatory strikes against the U.S. in a variety of forms.  And I'm not persuaded that the market's reaction takes into full account all of the likely political developments we are about to see," he said.

By Tuesday, any euphoria surrounding the U.S. raid in Pakistan had given way to other concerns - from the global impact of rising inflation in China to higher interest rates in India.
Although news of Bin Laden's demise helped push energy prices lower, energy trader Ray Carbone says other factors will ultimately determine whether oil and gas prices continue to rise. "The unrest in North Africa, Libya, more unrest in Syria, all tensions ratcheted up, all across the oil producing region - that to me is what is driving oil prices," he said.

The bottom line, say experts, is that Osama Bin Laden's death was a "feel-good" story. But it is a story whose financial impact, at least, is already starting to fade.

You May Like

US Imposes Sanctions on Alleged Honduran Drug Gang

Treasury department alleges Los Valles group is responsible for smuggling tens of thousands of kilograms of cocaine into US each month More

At 91, Marvel Creator Stan Lee Continues to Expand his Universe

Company's chief emeritus hopes to interest new generation of children in superheroes of all shapes and sizes by publishing content across multiple media platforms More

Photogallery New Drug Protects Against Virus in Ebola Family

Study by researchers at University of Texas Medical Branch, Tekmira Pharmaceuticals is first looking at drug's effectiveness after onset of symptoms More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
African Media Tries to Educate Public About Ebolai
X
George Putic
August 20, 2014 8:57 PM
While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video Ferguson Calls For Justice as Anger, Violence Grips Community

Violence, anger and frustration continue to grip the small St. Louis suburb of Ferguson, Missouri. Protests broke out after a white police officer fatally shot an unarmed black teenager on August 9. The case has sparked outrage around the nation and prompted the White House to send U.S. Attorney Eric Holder to the small community of just over 20,000 people. VOA’s Mary Alice Salinas has more from Ferguson.
Video

Video Beheading Of US Journalist Breeds Outrage

U.S. and British authorities have launched an investigation into an Islamic State video showing the beheading of kidnapped American journalist James Foley by a militant with a British accent. The extremist group, which posted the video on the Internet Tuesday, said the murder was revenge for U.S. airstrikes on militant positions in Iraq - and has threatened to execute another American journalist it is holding. Henry Ridgwell has more from London.
Video

Video Family Robots - The Next Big Thing?

Robots that can help us with daily chores like cooking and cleaning are a long way off, but automatons that serve as family companions may be much closer. Researchers in the United States, France, Japan and other countries are racing to build robots that can entertain and perform some simpler tasks for us. VOA’s George Putic reports.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.

AppleAndroid