Terrence Duffy, the CEO of the world’s largest futures market operator, the CME Group, said the markets see President Trump’s Syria strike as a warning sign.
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“This is a shot over the bow as they call it in the business, I guess, and now we are going to have to take a wait and see attitude like everybody is saying and that’s what the markets are doing,” Duffy told the FOX Business Network’s Maria Bartiromo.
Stock futures fell as much as 143 points Thursday night after the U.S. launched 59 Tomahawk cruise missiles at an airbase in Syria in response to a chemical attack earlier this week. Duffy said market volatility is common with geopolitical events.
“The markets, I think, are doing exactly what they are supposed to be doing. They are not overreacting,” he said and added that the sharp rise in oil and gold prices “is something you expect to see.”
Duffy added, in addition to Washington policy, global policies are also influencing the U.S. markets.
“It’s not just Brexit which everybody likes to talk about. We need to talk about the French elections. We need to talk about the German elections. What does that mean for the European Union?” he asked. “So many participants from around the world…manage their risk in the United States of America that they have with their own sovereign countries.”