Iran supreme leader, Ali Khamenei, warns the US of retalation
- Harsh revenge awaits "criminals" who killed Soleimani
- The killing will double the motivation of the resistance against the US and Israel
Words like this will keep the risk mood more defensive ahead of the weekend and will fuel more risk aversion in markets. I don't think this is one that market participants may move on too quickly from as we could see Iran respond at any given time.
The Santa Claus rally in the stock market already gave investors a reason to be more cautious and maybe to engage in some profit-taking so the events today will just help to make up their minds on the matter. At the same time, there's no rush to get back in just yet.
