The dollar and U.S. stock futures rose following President Barack Obama's announcement late Sunday night that Osama Bin Laden had been killed. Analysts said the boost to the currency was a signal of greater confidence in the United States and a reduction in national security risks. The killing of Bin Laden in Abbottabad, Pakistan, marked the end of a nearly 10-year manhunt for the terrorist leader.
"I think we need to keep an eye on how the U.S. equity cash markets are going to react to this news," Sue Trinh, senior currency strategist at RBC Capital Markets, was quoted as saying in MarketWatch. "The foreign-exchange markets have primarily been driven by risk sentiment and by extension U.S. equities."
"Osama's death is a very important event, not so much for the equity markets but if you look at the commodity markets," Manishi Raychaudhuri, strategist and head of equity research at BNP Paribas Securities told told NDTV. "Like in the oil prices, that impact was there to be seen early in the morning, when crude was down 1% to 1.5%, indicating that investors could be willing to take more risks as far as emerging markets are concerned."
"It's a short-term positive across the board both for domestic and international export-oriented companies," said Shawn Price in the Sydney Morning Herald. Continued Price, who manages $2.7 billion at Navellier & Associates in Reno, Nev.: "We will get a broad relief rally because a world villain has been taken down. Whether it's a true or false sense of security, the average American will feel more safe now, feel better about the economy and the market."
Bonds for Beginners
Learn about fixed income investments.View Course »