After withdrawing US troops from Syria, Turkish President Erdogan has not waited long to attack Kurds in northern Syria, who were previously US allies and under their protection. But which circles could Erdogan’s ego-trip apparently want to exterminate the Kurds?
Turkey is a NATO country and so here too, Article 5 roughly outlines that if one NATO country is attacked, the other NATO countries must come to the aid. This means that the Syrian army would oppose Turkey in this conflict if the other NATO countries were called upon to support Turkey. Now we are spinning the situation further on the one hand Turkey with Germany, France, England USA, etc., on the other side Syria with Iran and Russia as allies – looks almost like a 3rd World War II scenario.
NATO countries have decided not to provide arms to Turkey, but Erdogan, if necessary, gets them from Russia anyway, how grotesque? In the scenario just outlined Erdogan fights the Syrians with the same weapons but under NATO auspices – with all the love Turkey should decide whether it is a civilized western country and NATO member, or rather stands alone and just like the wind is blowing looking for its alliances.
What does this mean for the markets? The eyes are on many things at the moment, firstly the conflict on the Syrian-Turkish border, secondly Brexit, which perhaps still has a last-minute deal, thirdly, the negotiations on China-US trade relations, which may also end positively until the end of the year, fourth, the further FED decisions, another further interest rate cut seems possible, and fifth, last but not least, the quarterly results of the third quarter. So all in all a heap of fuel for market movement, but just this we want to make money for our customers, only downtime is hated us!