Global stock markets were lower overnight, as rising geopolitical tensions between the US and North Korea put investor sentiment to the test. While stocks were lower, the “risk-off” mood saw safe havens such as gold and the Japanese Yen rally.
We have noted that 2017 was set to be the year of politics, with one of the important factors to watch this year being the new political administration in the US. North Korea has announced a warning through its state media of a nuclear strike at any sign of aggression from America and President Donald Trump replied on Twitter that the US would “solve the problem”, with or without China. US Secretary of State Rex Tillerson also said during a Group of Seven meeting in Italy overnight that Russia must abandon its support of Syrian President Bashar al-Assad’s regime.
Trump’s Tweet on the Situation:
While not high probability events, rising geopolitical risks given tension between the US...
Stock Markets, Simplified.