After 10 years of waiting many Americans have turned to celebration as Taliban leader Osama bin Laden has been officially declared dead as of late Sunday night. In response to the news, the U.S. dollar has seen gains within the market, leaving analysts to question the event’s impact on the market.
Consumer confidence is one of the key factors in America’s economic recovery. The dollar and U.S. stock futures rose immediately after President Obama addressed the nation late last night—an increase signaling greater confidence and less worry over security risks. But the increase was short-lived as it lowered after trading above 73 all night.
The increase is a definite good sign, but it is currently too early to tell exactly what the long-term effects of bin Laden’s death will be. Experts say they will be keeping an eye on the commodities markets as those will be impacted the most. While other analysts think the event will not have as significant an impact as the Fed’s ever evolving regulations.
A hopeful outcome would be as Americans begin to feel safer without the worlds largest terrorist leader, they will also be more willing to take on risk. There is still a chance that other terrorist groups will band together in order to rebel against the death of bin Laden, putting the U.S. at risk for other attacks.
Although, bin Laden’s death has been good news for the U.S. there are still struggles the economy faces due to the Middle East. The market has shown a muted reaction in Oil Futures, proving the negative impact bin Laden’s reign had on the economy. With the civil unrest in Libya oil production has already taken huge losses.
With the initial positive reaction the markets are looking optimistic, but this can change. Osama bin Laden’s death is an event that many have been waiting years for, but until U.S and the rest of the world can see the long-term effects of eliminating this leader, it will be hard to tell how the market will follow.