I'm thinking oil/gold are signalling we could see a Zarqawi effect today along the lines of the false rally we saw on Hussein's capture. Equities and fixed income certainly haven't 'rallied' but ... I'm long ES in the pre-market to ride a false rally today. Longer term, Zarqawi snuff signals earlier US exit from Iraq - utimately that should lead to a US dollar rally, though that might not get underway for months. In any event, it will certainly be interesting today ... after Asia and Europe sold off as hard as they did.
I doubt it makes one hill of bean of a difference as far as financial markets are concerened, even though it is no small thing. nitro
Wondering if this may affect the current risk premium built into gold and oil today. Might be the catalyst that sends gold sub 600 although it does seem somewhat bid at 618 ish, probably down to 615 which is a technical level, and oil at 68. Although I agree a 'false rally' may occur, global equity markets are starting to look very unpleasant. May not be possible to brake at this time, even with chest pounding patriotic news. Yesterday's price action most disturbing.