The recovery in stock markets, which began yesterday following statements by US President Donald Trump (see previous article), is continuing strongly this morning. The trigger may have been new comments made by the president in the evening (Washington time). At the same time, oil prices are continuing to decline, which could further support the positive sentiment.
US troop withdrawal suggested
Speaking in the Oval Office about the conflict with Iran, the president indicated that the United States could withdraw from the region within two to three weeks and bring the fighting to an end. Notably, he emphasized that no formal agreement with Tehran would be required, as the objective of eliminating the nuclear threat had largely already been achieved.
He also suggested that oil prices could fall significantly once the United States withdraws from the conflict.
Oil prices decline further
Oil prices are reacting this morning with additional losses following the president’s comments. US crude oil WTI is approaching the 90 USD per barrel level and is currently trading at around 92.70 USD. Brent crude has fallen clearly below the 100 USD mark again and is currently trading at approximately 97.65 USD per barrel.
Stock markets extend rally
Stock markets are continuing their upward movement following positive signals from Asia. Japan’s Nikkei 225 is gaining 5.31%, while Hong Kong’s Hang Seng is up around 2.34%.
The German DAX has moved clearly back above the 23,000 point level and is currently trading at around 23,300 points, up approximately 3%. France’s CAC 40 is following with a gain of around 2.35% and is approaching the 8,000 point mark.
Falling oil prices, along with the prospect of lower production costs, could support the positive development, even though the conflict has not yet been resolved.
US index futures are showing a more moderate increase of around 0.45% in pre-market trading, after US indices had already gained between 2.5% and 3.5% on Tuesday.
Gold price continues to rise
The gold price has regained the 4,700 USD per ounce level after an initial overnight attempt to rise had failed. It is currently trading at around 4,715 USD, representing a gain of approximately 1.1%.
A possible factor behind the increase could be the weakness of the US dollar, which has declined following the recent statements by Donald Trump. The prospect of easing tensions may reduce demand for the US dollar as a safe-haven asset. EUR/USD is rising to around 1.159, approaching the 1.16 level.
Recovery also in Bitcoin and altcoins
The crypto market is also showing signs of recovery. Bitcoin is currently trading at around 68,950 USD, gaining approximately 2.4%.
The move is more pronounced in Ethereum. The second-largest cryptocurrency is rising by around 4.15% to approximately 2,140 USD, once again showing slightly stronger performance than Bitcoin.
However, on a weekly basis both cryptocurrencies remain in negative territory, with Bitcoin down around 2.4% and Ethereum down about 0.6%, suggesting that the current move may be more of a short-term recovery.
Outlook: high volatility likely to persist
The current market movements show that even vague statements can trigger significant reactions. Concrete agreements or reliable progress are still lacking.
Against this backdrop, the environment remains vulnerable to rapid shifts in direction. If the prospect of a US troop withdrawal does not materialize or new tensions emerge, markets could quickly come under pressure again.
