Stocks plunge, gold spikes after Trump taunts Russia with missile strikes in Syria

The top three American indices – S&P 500, Dow Jones Industrial Average and Nasdaq Composite – have all declined on pre-market trading following the escalation of tensions between nuclear superpowers Russia and the US.

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All three indices were losing over one percent before the opening bell in New York. Futures dropped significantly after US President Donald Trump tweeted a warning to Russia on Wednesday to “get ready” for Syrian missile strikes.

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The building of the Russian Foreign Ministry. © Sergey Kovalev

“Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and ‘smart!’ You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!” Trump said on Twitter.

The message from the US president also wiped out early gains on the European markets with major burses in London, Paris and Frankfurt trading half to one percent lower following the news.

The markets are divided in two ways – a possible US military strike in Syria brings uncertainty, but the ease of trade tensions between the US and China can be regarded as a sign for bulls to open long positions. People’s Bank of China Governor Yi Gang announced the plan to open the world’s second-biggest economy, something that can be regarded by markets as a rapprochement in the trade war with the White House.

Gold rose to its high of the day on the news, trading 0.6 percent higher at $ 1,353.70 per troy ounce, as investors turned to the bullion, which is regarded as safe haven in times of uncertainty.

For more stories on economy & finance visit RT’s business section

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Post Author: martin

Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of and Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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