Initial reactions to the Syria strike by US, UK, and France were rather “insensitive”. The “one-time shot” was performed and finished quickly and there was no further escalation after that over the weekend. Markets are not pricing in additional geopolitical risks for the moment.
But after a calm start, markets turn into risk averse mode again as the Asian session goes, led by selloff in Chinese and Hong Kong stocks. At the time of writing, China SSE is down -1.6%, HK HSI is down -1.5%.
JPY and CHF jumps in the current 4H bar while CAD, AUD, NZD are pressured. CAD is additionally weighed down by WTI crude dipping below 67 to 66.8.
