Wall Street losses after US drops mega-bomb on Afganistan



Geopolitical risks remain front and center, following the bombing of Afghanistan.

Most noteworthy, markets in Japan, South Korea and China closed lower on Friday. As geopolitical tensions in the region heightened, while other major bourses in Asia remained closed for a public holiday.

In Japan, the benchmark Nikkei 225 closed down 91.21 points, or 0.49 percent, at 18,335.63, while the Topix slid 9.24 points, or 0.63 percent, to 1,459.07. Across the Korean Strait, the Kospi closed down 13.73 points, or 0.64 percent, at 2,134.88. Chinese mainland markets were also down — the Shanghai composite finished down 31.47 points, or 0.96 percent, at 3,244.48 and the Shenzhen composite fell 28.01 points, or 1.39 percent, to 1,986.64. Taiwan’s Taiex fell 103.75 points, or 1.05 percent, to 9,732.93. (CNBC info)

Asias sessions

The Asia’s sessions followed a lower finish on Wall Street. It happened after US has dropped its biggest non-nuclear bomb on Afganistan. There are many consequences of this move, especially on the stock-exchange markets.

This is the first time the GBU-43 bomb, known as the “mother of all bombs,” has ever been used in combatThe bomb contains 11 tons of explosives and is also known as the Massive Ordnance Air Blast bomb.

In the meantime, the geopolitical tensions are just taking an upwards trend. US and North Korea are problematic. After official for the reclusive regime on Friday blamed President Donald Trump for escalating tensions on the Korean Peninsula.

Vice Minister Han Song Ryol warnes the U.S. against provoking North Korea military with words: “We will go to war if they choose.”

Dollar Index

The dollar index, which measures the U.S. dollar against a basket of currencies, traded at 100.59 at 2:17 p.m. HK/SIN, climbing from levels near 100.01 in previous sessions.


“The U.S. dollar took its cue from yields, weaving in and out of negative territory.” (Kathy Lein, managing director of foreign exchange strategy at BK Asset Management. )



Yen Indexes

Among other currency majors, the yen strengthened to 108.92 against the greenback Friday afternoon local time, after weakening to an earlier high of 109.22. The Japanese currency remained stronger than levels above 110.7 reached against the dollar earlier in the week.


Australian Dollar

Following, the Australian dollar fetched $0.7562 and the euro traded at $1.0613.


Oil summary

Oil prices finished modestly in the Thursday session even as U.S. oil rig count rose to its highest level in two years and threatened the re-balancing of markets, according to Reuters. Energy services firm Baker Hughes said drillers added 11 oil rigs in the week to April 13, bringing the total count up to 683.

Global benchmark Brent settled up 3 cents at $55.89 a barrel in the previous session, while U.S. crude was up 7 cents at $53.18.


0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *