var _hmt = _hmt || []; (function() { var hm = document.createElement("script"); hm.src = ""; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(hm, s); })();
Breaking News

Asia Markets: Safe Haven Price Action Continues Higher

By MarketPulse (Jeffrey Halley)Jan 06, 2020 02:35AM ET
Asia Markets: Safe Haven Price Action Continues Higher
By MarketPulse (Jeffrey Halley)   |  Jan 06, 2020 02:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The return of Japan from an extended New Year’s break and the effective start of the New Year for the rest of the world’s markets has been a busy one this morning. Haven assets remain solidly in demand across the board in the Asian morning. Equities have sunk, gold and oil have rallied, the Japanese yen and Swiss franc are higher, as are U.S. Treasuries.

The driver, of course, is relations between Iran and the U.S. following Friday’s assassination of the Iranian Quds Commander in Bagdad. Things have not got quieter over the weekend, with President Trump tweeting that 52 targets in Iran are locked and loaded for destruction if Iran retaliates. Iran itself has announced it will remove all limits on uranium enrichment with numerous officials brandishing the revenge sabre.

In Iraq, an ostensive allay of the U.S. but with a Shia dominated population and government like neighbouring—and the location of the assassination—denounced the U.S. actions. The Iraqi Parliament voted to remove all U.S. troops from the country, supporting the government’s stance. All music to the ears of Tehran and Moscow. President Trump responded that the U.S. would only leave if the Iraqis paid for a U.S. airbase there. Japan and South Korea haven’t paid, I see no reason Iraq will either. Additionally, Iraq has said the U.S. actions torpedoed secret detente negotiations between Saudi Arabia and Iran, that they had been brokering.

Israel meanwhile, has sent troops North to its border with Lebanon, fearing reprisals from well-armed and trained Iranian proxies there. Meanwhile, Turkish troops arrived in Libya’s capital Tripoli, to “advise” on the defence of the city. They will be facing “advisors” from the UAE, Russia and Egypt amongst, others assisting the other side.

Some may say its business as usual in the Middle East, where the political situation more complicated than the bitcoin algorithm, even on a quiet day. Philosophical musings aside, a severe escalation of tensions in the Middle East—or even outright hostilities—has the potential to easily subsume any benefits gained from the interim U.S.-China trade agreement. With so much cash heavily invested in global recovery trade in the elusive search for yield, a downward correction in asset prices could be aggressive. The price action of Friday and this morning suggest that early casualties will be emerging markets and regional Asia. Asia’s dependence on imported energy marks it out as an easy target for bears.

78彩票网appThe world moved on quickly from the Saudi Arabian attacks last year, the pace of which still surprises me. Iran’s recorded civilisation dates back some 5,000 years. A fact often overlooked and is perhaps second only to China. Five thousand years teaches patience and Iran has plenty of that. An Iranian response may not come tomorrow or next week, but arrive it shall. Financial markets, this time around, would be well-advised not to allow complacency to set in too quickly. Expect cash to remain king for now, with downward pressure on developed-market sovereign yields to continue.

Middle East fears will likely subsume today’s data releases in Asia. This morning, we have already had a series of PMI’s from Australia, Japan, Hong Kong and Singapore. All showed an improvement over the previous month, suggesting that the nascent recovery is taking root across the region still. China’s Caixin Services PMI78彩票网app was released as well, and it fell to 52.5 from last month’s 53.5. That though is still comfortably in expansionary territory.

Friday’s U.S. Nonfarm Payrolls book-ends the week from a data point of view, meaning that geopolitics will dominate market sentiment over the coming days.


Equity markets across the Asia-Pacific region are an ocean of red this morning, following a Friday session on Wall Street that could not recover from Asia and Europe’s Middle East induced sell-off. S&P 500 e-mini futures are 0.70% lower with the Nikkei 225 1.98% lower, with Japan returning from a week-long holiday.The Straits Times and Jakarta Composite are 0.50% lower with the South KoreanKOSPI falling 0.90%, as has Hong Kong’s Hang Seng and the Bursa Malaysia. Down under, both Australia and New Zealand are 0.40% lower. China is showing some resilience with both the Shanghai Composite and the CSI 300 flat in early trading, suggesting that maybe some “national team” smoothing is around.Equity markets across the region will continue to remain under pressure today. Potentially severe disruptions to energy and world trade will not play well, and neither will fast money’s move into haven assets.


Both CHF and JPY have continued to rally against the dollar this morning, climbing 0.15% to 0.9710 and 108.00 respectively. Trade sensitive AUD and NZD fell sharply on Friday as a proxy for China. AUD falling 0.60% to 0.6945 and the NZD falling 0.50% to 0.6660.

The haven Swiss franc and Japanese yen aside, it has been a story of U.S. dollar strength as inflows into U.S. Treasuries supported the greenback. 10-year yields fell ten bps to 1.70%. The dollar showed strength across the board, most notably against emerging market currencies, with the Mexican peso and South African rand78彩票网app amongst the notable losers.

Regional currencies will continue to struggle against the dollar as fast money heads to the door, and the Iranian situation evaporates confidence in the global recovery trade. Expect that trend to continue throughout the week as investors move into cash, gold and U.S. bonds.


Both Brent and WTI jumped by 3.0% on Friday, with the developments over the weekend causing both contracts to jump again in Asian trading. Brent crude has climbed 2.40% to $70.25 a barrel, and WTI has risen 2.0% to $64.30 a barrel, both 8-month highs.The geopolitical situation means that Brent and WTI should consolidate above $70.00 and $64.00 a barrel in the near-term. Technical levels become somewhat meaningless in these circumstances. Needless to say, it is hard to see the situation de-escalating quickly this time as it did post the Saudi Arabia attacks. If anything, further threats by either side, have the potential to push oil even higher.Intra-day prices moves are likely to be driven by headlines from the social media accounts of both sides.


If anything proves how nervous global markets are, and how serious the escalation between the U.S. and Iran has become, it is gold’s price action in Asia this morning. 78彩票网app rose $23.0 to $1552.00 an ounce on Friday and has leapt an incredible $25.0 an ounce this morning. It is currently trading at $1577.00 an ounce, having traded as high as $1589.00 in panic post-open buying earlier.

It is hard to believe that gold was $100 an ounce lower just two weeks ago, and like oil, technical levels become a bit meaningless when geopolitics drives price action. It is clear where a lot of the fast-money is going that is rotating out of regional markets and currencies.

78彩票网app should find some resistance around the $1600.00 an ounce regions. Thereafter, the charts open up, with no resistance of note until a series of daily tops at $1800.00 an ounce.

Readers will know that I am a reluctant gold bull, but that all bets are off in a crisis. 78彩票网app comes into its own in situations such as we face today. An increase in tensions could easily see $1600.00 breached and rapid progress higher. If by some miracle, the U.S.-Iran situation rapidly de-escalates, gold’s retreat will be as swift as its ascent.

Asia Markets: Safe Haven Price Action Continues Higher
Asia Markets: Safe Haven Price Action Continues Higher

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Kamohelo Tjane Jan 06, 2020 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I need help guys I don't know how to trade
ECL SALES Jan 06, 2020 5:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Very nicely explained. Thanks
Biji Rajaku Jan 06, 2020 3:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So you will see the market will be in blood bath in this week...
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

78彩票网appSince you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

78彩票网appI feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email presents a one-time opportunity
7072彩票开户 7073彩票注册 689彩票邀请码 963彩票开户 7073彩票地址 7073彩票网址 8炫彩彩票app 7073彩票登录 7x彩票网app 66顺彩票app