October 15, 2018
It looks like it could be another tough week for global financial markets.
As the week began, markets were down all over the world, and relations between the United States and Saudi Arabia have taken a sudden turn for the worse. That could potentially mean much, much higher oil prices, and needless to say that would be a very bad thing for the U.S. economy. It has really surprised many of us how dramatically events have begun to accelerate here in the month of October, and the mood on Wall Street has taken a decidedly negative turn. Yes, U.S. stocks did bounce back a bit on Friday (as I correctly anticipated), but it was much less of a bounce than many investors were hoping for. And this week got off to a rough start with all of the major markets in Asia down significantly…
In the Greater China region, the Hang Seng index in Hong Kong fell by around 0.9 percent in early trade. The Shanghai composite also slipped by 0.33 percent while the Shenzhen composite bucked the overall trend to edge up by 0.4 percent.
In Japan, the Nikkei 225 fell by 1.48 percent in morning trade, while the Topix index slipped by 1.17 percent, with most sectors trending lower.
But what happened in Asia was nothing compared to what we witnessed in Saudi Arabia.
At one point the stock market in Saudi Arabia had plummeted 7 percent after news broke that President Trump warned that the Saudis could face “severe punishment” for the disappearance of journalist Jamal Khashoggi.
The Saudis are denying doing anything wrong, but everyone agrees that he is missing, and everyone agrees that he was last spotted entering the Saudi Consulate in Istanbul on October 2nd.
And it is being reported that U.S. intelligence had previously intercepted communications which indicated that the Saudis planned to abduct Khashoggi.
It is believed that Khashoggi was dismembered…