Market sentiments stabilized as there was no further escalation in Middle East tensions on Monday. Major US indices closed generally higher overnight, reversing initial losses. 10-year yield also recovered to close at 1.811, back above 1.8 handle. Asian markets are also in black,. with Nikkei up 1.5% at the time of writing.
It’s widely reported that the US military prepared a letter informing Iraq about pulling American troops out of the country. That followed Iraqi parliament’s vote on Sunday to call for all foreign troops to leave. But the news was quickly denied by top US officials overnight.
Defense Secretary Mark Esper told reports that “there’s been no decision whatsoever to leave Iraq.” And, “that letter is inconsistent of where we are right now.” Army General Mark Milley added the reported letter was “poorly worded, implies withdrawal. That’s not what’s happening.”
