US Congress passes spending bill, avoiding disruption to US economy
Government to reopen, US shoots down Iranian drone – US Congress passed a budget bill, which was later signed by president Donald Trump on Tuesday, ending the partial government shutdown. This time, the closure lasted just three days, as Democrats and Republicans joined forces to restore government funding. Meanwhile, investors keep an eye on US-Iran news, after a US aircraft carrier shot down an Iranian drone flying close to the ship.
Gold and Oil rise on US-Iran tensions – The conflict between the two countries has raised tensions and weakened risk appetite, pushing safe-haven Gold to higher levels – the precious metal tends to rise when geopolitical risks increase. Oil prices are also moving higher this week, as fears of an escalation are putting upward pressure on Crude.
Diplomatic talks next – Washington and Tehran representatives are scheduled to hold negotiations in Oman this weekend. Will the sides agree on a deal over Iran’s nuclear program? If the talks fail, a US strike against Iran appears likely, which would trigger turmoil in the financial markets. If tensions subside, Gold and Oil could decline.