European Futures Dragged Down By Syrian Conflict

European Futures was seen extending losses, while the ongoing Syrian conflict builds up as international players including the US, France and the United Kingdom hinted they are considering military intervention on suspicion that the chemical weapons may have been used against civilians by the Syrian government. Security analysts warned that the US missile strike against the country is expected to come as soon as Thursday.

Futures of the European Euro Stoxx 50 rose 0.33% at 2,743.50, while the German DAX gained 0.29% to 8,229.80. While futures of the French CAC 40 added 0.27% to 3,960.50 and the UK FTSE 100 futures advanced 0.30% to 6,408.30.

Officials from Troika and auditors representing the IMF, ECB, and EC are expected to visit Portugal for a quarterly review of the country’s bailout program progress.

“A necessary ingredient for Greece, Portugal and Ireland to graduate successfully from their bailout programs is a substantial pick-up in growth, which provides assurance of debt sustainability. In that context, it is worth assessing to what extent fiscal austerity may have dragged on GDP growth in the periphery, and may continue to provide a headwind,” analysts from Bank of America Merrill Lynch wrote in a note.

European Futures – Conflict In Syria

The tension in Syria continues to drags stocks down for the second day while commodities and as safe-haven assets are seen advancing. The conflict in Syria started escalating earlier this week, after reports claimed that its government may have used chemical weapons against civilians.

Earlier this week, the US Defense Secretary Chuck Hagel said that the military may have to intervene and take action against the Syrian government. Senior US officials said the US military could hit Syria with missile strikes as early as Thursday.

French President Francois Hollande also shared his view on the conflict in Syria at the conference of French ambassadors.

“France is ready to punish those who took the heinous decision to gas innocents,” he said.

 

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