North Korea rattles markets

David Morrison Trade Nation

Traders are once again seeking out safe havens following the latest “show of strength” from North Korea. This weekend’s nuclear test has increased demand for precious metals, the Japanese yen and Swiss franc as investors worry about the US-led reaction to the latest provocation from the rogue state. This has also led to a mark-down in stock index futures as equities are expected to come under pressure. The worry is that this latest action could lead to a military response from the US and allies. But even an escalated programme of sanctions (which is the favoured option) could potentially upset the global economy, particularly if it results in a reduction in trade between the US and China. On top of this, today’s trade is likely to be illiquid and prone to sharp price moves as the US is closed for Labor Day.

Author

David Morrison

Trade Nation

Senior Market Analyst at Trade Nation since August 2019. David's role is to build value and growth through customer acquisition and retention via market commentaries, blogs and vlogs.

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