Dow Futures on Knife Edge as Trump Fires White House Warmonger – CCN.com
Dow Jones Industrial Average (DJIA) futures swung wildly on Wednesday as traders come to terms with the shock departure of Trump White House warmonger John Bolton. His resignation triggered a swift drop in the oil price and a small relief rally for global stock markets.
Bolton’s aggressive military stance on the global arena blocked progress in all aspects of foreign policy. His removal immediately released the pressure valve on global tensions with Iran, Venezuela, and North Korea. Analysts believe his presence in the White House also slowed down trade negotiations with China.
Traders anticipate that Bolton’s departure will pave the way for dialogue with Iran and perhaps looser sanctions on the regime. The effect of which could increase oil supply from the region. More importantly, his resignation reduces the likelihood of conflict in the Middle East, a key pressure gauge for the oil price.
Dow relief as global tensions ease
Bolton’s departure eased tensions across the globe, like releasing a pressure valve on US foreign policy. In particular, Trump will have less resistance when it comes to dialogue with North Korea.
Aside from the infamous “fire and fury” threat, Trump’s go-to foreign policy stance has always been diplomatic. He favors negotiation over military action. With one less warmongering voice in the White House, trade talks with China may even accelerate.
Other stock market factors on Wednesday
Dow futures are also enjoying a small boost from Apple’s successful iPhone reveal last night. Investors sent Apple stock 1% higher as Tim Cook unveiled the iPhone 11 with an enticing low entry price point. Cook simultaneously dealt a blow to Netflix and Roku with more details on Apple’s streaming service.