Our fears of Iran being drawn into the escalating conflict between Israel and Hezbollah was met with a reprimand from the president of the Persian Gulf OPEC producer who said on his visit to New York for the UN General Assembly gathering that Iran does not want a wider war in the region and called for dialogue to resolve the conflict.
A resilient and stubborn performance from risk assets on Friday wrapped up a buoyant week. The major price driver was undeniably the move by the Federal Reserve on Wednesday, and oil prices received additional support from Israel and Palestine, where a flare-up in tension most plausibly increased the risk premium. WTI moved $3.25/bbl higher on the week and is now $6.17/bbl above the September 10 bottom.
After the FED opened the door for risk appetite overnight on Wednesday, it did take a little while for the ever-present bulls to step through. It also took for the cash market to open and a better reading in Jobless Claims to entice continued buying taking the US bourses to record highs.
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