Investors shrug off fresh NK provocation

The news that the North Korean regime lobbed another missile over Japanese territory last night was largely met with indifference with risk assets little-moved. In fact, the market’s insouciance was such that the Nikkei ended the session 100 points higher, or +0.5%. European stock indices were a touch weaker first thing but that can mostly be put down to last night’s mixed close on Wall Street. There’s a feeling (hopefully correct) that North Korea has made its point so is unlikely to engage in any other provocative acts over the weekend. That leaves investors free to concentrate on more positive events, such as the prospect of US tax reform.