Iraq may weaken, but not derail market growth

Iraq may weaken, but not derail market growth

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According to analysts, concerns about the situation in Iraq, which now excite the global stock markets, are unlikely to lead to a deep market correction expected for some time.

Stocks on Wall Street closed lower overnight, S & P 500 continued to move away from record highs this week. In the Asian session on Friday Nikkei opened lower by nearly 1% against the events in Iraq.
“These events will certainly have an external potential negative impact on the markets, but now we have to consider them only as interference,” – said Robert Pavlik, chief market strategist at investment company Banyan Partners.

“The situation in Iraq strengthens global concern geopolitical situation. Oil traders may raise the price to $ 112 per barrel, but it is anything seriously affected, “- he added.

This week, the Sunni Islamic militants continued to move towards the capital – Baghdad, prompting U.S. President Barack Obama to offer assistance to the Government of Iraq to fight extremists. On the background of the general chaos, Iraqi Kurds captured the oil-rich Kirkuk, which resulted in a “rise” in oil prices to $ 107.68 per barrel, which was the highest since September.

With regard to the broader implications for the stock markets, analysts believe that the general trend of growth so far will continue.

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