Will negotiations change the direction of the stock market?
According to Tejarat News, it was on Thursday that Ali Bagheri, the head of Iran’s negotiating team, traveled to Vienna, and after about four months, the diplomats went to Vienna to conduct JCPOA negotiations.
On Wednesday, Bagheri, announcing his trip to Vienna, the capital of Austria, to participate in the new round of talks on lifting sanctions and revitalizing the JCPOA, wrote on his personal Twitter: “We are going to Vienna to advance the negotiations.” Responsibility rests with those who violated the agreement and failed to distance themselves from the infamous legacy of the past. America should appreciate the opportunity provided by the generosity of JCPOA members. The ball is in their court to show maturity and act responsibly.
Fluctuations in the stock market due to negotiations
The negotiations to lift the sanctions and return to the JCPOA started in the first days of January 1400 and then stopped in March. After a few months, a new round of negotiations was held on the 7th and 8th a few weeks ago in Doha, Qatar. But after several months, there is still no clear result of these negotiations.
Capital market experts and analysts believe that due to this uncertainty in negotiations, the stock market is also volatile. That is, with the announcement of the diplomats’ trip, the market will revive a little, and after the result is not announced, the market will turn red.
It is true that the lack of liquidity has made the stock market downward. But the uncertainty in negotiations has a negative effect on the capital market. That is, shareholders cannot decide which stock is better to buy. When the tasks of the negotiations are determined, the stock market transactions will also increase and the shareholders can decide which groups and industries to buy.
In general, if the JCPOA negotiations reach an agreement, the stock market will rise in the long term. But in the short term, due to the drop in the price of the dollar and other existing risks, the market trend will decline.
On the other hand, due to the lack of agreement in the capital market, it rises in the short and long term. This rise will be due to inflation and sometimes increasing sanctions.
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