The closure will be in observance of Labor Day and extends to all major European markets. Even the ECB’s payment and securities settlement systems will be down. As such, that will impact liquidity conditions as well. So, don’t expect any leading direction from Europe in driving broader markets for the session ahead.
London will still be open though, so there’s at least that to work with. But all things considered, the broader market mood is still heavily riding on what happens next with the US-Iran conflict.
For now though, Wall Street doesn’t seem to care but are investors being too complacent here? That’s something to consider.
The dollar is keeping steadier after the drop yesterday with USD/JPY bouncing back today to 157.25 currently, up 0.5% on the day. Meanwhile, S&P 500 futures are up 0.2% after the solid gains overnight. It will be interesting to see how much of yesterday’s moves were tied to month-end or markets being overly eager in writing off the war. We shall see.
