US Proceeds with Diplomacy on Syrian Issue – Stocks Rise

Investors are breathing with ease after signs that the US will proceed with diplomacy on the Syrian issue and positive news from the Chinese markets. The uncertainty over the possibility of new military involvement for America’s armed forces kept the market from growing, but now that new options have appeared the S&P 500 and Dow industrials finished near four-week highs. Russian backed proposal to confiscate Syria’s chemical arms to the United Nations were accepted by the regime in Syria. The use of chemical weapons was the main reason why the American government threatened to invade, but now that these weapons will be in the arms of the UN there doesn’t seem too much reason to believe that an attack is likely. The economic data out of China showed that their industrial production numbers and their retail-sales numbers were up double digits over last year’s.
Thanks to the good news there is an asset redeployment going on in the market. People are getting rid of their gold positions since they feel the market is less risky. Gold, Oil and the U.S. dollar are affected greatly by geopolitical risk.

Source: http://www.marketwatch.com/story/us-stocks-rise-on-china-data-syria-events-2013-09-10