As we all know there exists a great tension between people around the nation, around countries; yes! around the whole world due to the possibilities of a war against Iraq. This tension grows higher day by day. And people, everybody! Including each one of us wonder what to expect, if we are going to be alive by tomorrow or not, by next week, may be? And if so, should we buy a new car, a house, clothes or even food? Should we think positive and keep living a normal life? Or should we just stay at home waiting for the worse to happen? Yes! It is tough to think this way, but is even worse to accept the fact that it is a reality. As we can assume there are economic decisions that have to be made even though we are living a very critical situation. Everything involves business, trade and marketing at a very high level.
Even world economists and organizations are having issues, due to this possible war. Traders are very concerned about prices of goods like gold and oil fluctuating day by day. Currencies are not being stable enough to take determinations on whether or not to invest. And trade is being affected between countries that favor war and the ones that do not. This possible war might create divisions in the international community and mass protests against U.S.-led attack.
Referring the article “stocks up in Europe, Asia. While gold, oil tumble as investors see war with Iraq may be delayed.” Found on the website money.cnn.com.
Stocks in Europe and Asia have been restored and that gold and oil prices have dropped because investors around the world believe that there is more probability on delaying the war. Traders fear a war on Iraq could disrupt supplies from the oil-rich Middle East, although analysts believe that if any war is swift and decisive, prices would spike and then fall sharply. Oil prices are driven largely by uncertainty over Iraq and have strong repercussions on imports and exports. As for gold investors are pulling money out of what is often viewed as a safe protection in times of chaos.
The reaction in financial markets came after millions of people around the world took part in anti-war protests demonstrating that there exists a fierce opposition to military action. In other markets the dollar rose versus the Euro, but lost some value versus the yen. U.S. currency along with stocks has weakened for most of 2003; but with this war delay, some international investors are choosing to put funds back in the U.S. In Europe and Asia markets are as well closing higher.