Bin Laden and the effect on Supply Chains

Hot on the heals of  U.S. President Barrack Obama announcing late last night that al Qaeda leader Osama bin Laden was reportedly killed in Pakistan, global markets shot up today and prices of oil are down.

The Dow Jones Industrial Average rose more than 25 points after ending April at multi-year highs, while the S&P 500 and Nasdaq reported moderate gains. JP Morgan analysts wrote in a note to clients that the news of bin Laden’s death should also be a positive for stocks, as more investors are expected to buy into the market.

Crude oil prices also fell as much as three percent overnight before making a modest recovery on Monday morning.

If those trends continue, that could help spell relief for a global supply chain that’s been taxed by the Japan disasters. Cheaper oil prices could directly lead to cheaper travel, shipping and manufacturing costs, while a more confident market could lead to economic growth and job openings.

(Digital Supply Chain)