Overnight, U.S. markets rose as Israel attacked

Overnight, U.S. markets rose as Israel attacked Iran’s largest gas storage facility, raising inflation concerns again as the feared producer price index (PPI) rose 0.7 percent, higher than expected 0.3 percent, and, crucially, the three major U.S. indexes fell by 1.3 percent on average for the three reasons mentioned above, as the FOMC expressed concerns about inflation and the impact of the war on Iran after the rate freeze. Still, the FED predicts one rate cut.

The U.S., Israel and Iran all have different interests in the upcoming war. The ostensible reason for Israel’s supply of gas to Iran on Monday is that Iran is the most influential force in Israel’s existence, so it should lose momentum this time. In reality, if a proposal on an increase in the war budget presented to the parliament is rejected, it would be dissolution of the parliament, which would mean Netanyahu’s real power, which would be his judicial process, and Netanyahu thinks it was an incident that took place because he had to prolong the war with all his might.

Iran has firmly recognized that the war can control the global economy. Russia is also stepping up efforts to attack Middle East oil facilities and block the Strait of Hormuz. When oil prices fell and the Russian economy collapsed in the late 1990s under his predecessor Yeltsin, Putin took the presidency by taking advantage of the fall of oil prices in the late 1990s. He intended to supplement the costs of the war in Ukraine and maintain high oil prices, not to mention the fact that oil prices have the most decisive effect on the Russian economy. If Iran also raises international oil prices by destroying oil fields, it would not be necessary to end the war early, which is rather profitable economically. The war reparations they say will be a golden opportunity and a blessing in disguise to gain anything, whether it is money or the lifting of economic sanctions.

The U.S. is the last country to go to war. Of course, we are beleaguered. As Joe Cant, director of NCTC who resigned on Wednesday, testified, it turned out that he started the war at the urging of Israel. I think the conspiracy theory that he threatened Trump with the Absteen file is also true. Anyway, the U.S. may want to get out of Iran. The U.S. says that oil supply through Hormuz is minimal, but China and other countries like us produce oil. As oil prices rise, ethylene prices, the raw material for plastics, have already risen by 20 percent, and if the war continues, it is only a matter of time before the price increases by 5-60 percent. They will be self-sufficient in oil, but there is no place where oil does not go into the production of household goods. In other words, it is inflation. He beat Biden with inflation to become president, and he is worried about the November midterm elections.

Since we are a semiconductor republic, we may be encouraged by Micron’s earnings surprise that came out yesterday, but because it was a somewhat predictable event, Micron’s stock price rose only 0.03% yesterday and is currently falling more than 3% in the after-hours market. The most important factor is the economic outlook, that is, macro-in oil prices and inflation, rather than corporate forecasts. The so-called system risk is increasing. We should be excited about the prospects of the semiconductor industry, but we should not forget the macro factor.

Yesterday’s rise in our market also showed a surge in financial investment companies, that is, ETF funds. I think it was important to confirm that there were many waiting funds for stock purchases on the market. Sometimes I see the madness of the crowd beyond the crowd psychology. It feels like everyone drank kimchi soup too early just because the war in Iran is over. I should quickly clean up and rest on the foot morning when I caught it cheaply from the night gift. The heart rate is too irregular. I’m okay now, but I think this is also a time difference attack, so I’m going to take medicine and lie down because I don’t know when to attack. I hope you all keep your assets well in this volatile market…