Trump threats fall of deaf ears
|Despite threatening to destroy North Korea, markets seen unmoved at the risk of war, with the nuclear disarmament tactics of old on the table once more.
- Dow hits yet another record high
- Mixed risk picture, as both risky and haven markets rise
- Trump calls out ‘Rocket Man’ at the UN
The optimistic tone seen throughout US markets looks set to continue today, with early trade seeing the Dow hit its 41st record high of the year so far. Despite the optimism evident throughout European and US markets, much of the day has seen a clear degree of hesitancy. With gains across havens such as gold and the yen, there is clearly an incomplete picture of risk sentiment today.
Donald addressed his UN appearance to address the existence and support of ‘rogue regimes’, including the likes of North Korea, Iran, Cuba, and Venezuela. However, for the markets perspective, the focus is clearly on the potential repercussions from Pyongyang following Trump’s declaration that US would be willing to ‘totally destroy’ North Korea. The subsequent risk-on move for gold and the yen highlights that there was little to make markets believe a military response is anywhere near. While Trump’s speech was strongly-worded, the fact is that this represents a redirection of Trump’s effects, away from military and in favour of democratic and political means. Talk of a nuclear disarmament by North Korea is frankly wishful thinking, taking us back to the same rhetoric unsuccessfully espoused by Trump’s predecessors.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.