Geopolitical concerns stabilizing – Danske Bank

Danske Bank analysts point out that yesterday's session proved a stabilisation in geopolitical concerns as the Iranian side emphasised that it does not seek war and President Trump downplayed the missile attack.

Key Quotes

“The US clarification that the Iranian attacks had caused no casualties was important as it limits the risk of retaliatory measures that could trigger a full-blown war, which in our view is required for the conflict to have ramifications for the global economy.”

“Trump did announce new sanctions on Iran but for markets this falls in the camp of possible retaliatory measures that indicate that the US is also backing away from an all-out conflict.”