Shares May Increase Due To Bin Laden’s Death
Tuesday, May 10th, 2011
Any important incident always has a direct effect in the stock market, regardless. It can to some point have an effect on the rise and fall of the stocks for the reason that in many cases, emotions are the basis for trade decisions. Lots of people in the stock exchange business have anticipated the stock market to go up due to announced and confirmed death of the terrorist leader, Osama bin Laden.
Some sources reported that the U.S. dollar came to a rally shortly after the announcement, the oil price dropped and the stock market futures also increased. However, it didn’t last very long. Inspite of that, some traders are still optimistic concerning the market trend because of this incident.
Kathleen Brooks, Forex.com’s research director said, “Going forward (bin Laden’s death) will have more of a political impact than a financial impact. It will be interesting to see if the death of bin Laden will impact U.S. foreign policy and if it could reduce defense spending. If that were to happen, it would help U.S. public finances, but that is only hypothetical at this stage.”
