( as of 6:50 AM PST)
Investor attention shifted sharply overnight, from Federal Reserve Bank fretting, to serious geopolitical drama with the news that Turkey had shot down a Russian fighter which had violated its airspace and ignored Turkish warnings. The pilots ejected, but were reportedly killed by Syrian opposition fighters on the ground. Russia President Putin has called the Turkish action a 'stab in the back' and an extreme rise in tensions over the Syrian war has erupted. European markets took the brunt of the news, falling moderately while US markets are fairly calm in spite of the turmoil. Stock indexes in the US are carrying losses of under one half percent, not bad given the large run-up of the last week. In economic news, US GDP for the third quarter was adjusted upward to 2.1% from 1.5%, a nice surprise for investors. The resilience of investors is impressive in light of the negative news on the world scene and interest rate projections, and it bodes well for a continuation of this early Santa Claus rally. Oil and gold have both spiked higher on the startling Syrian war news.
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