The market’s reaction to North Korea this week is historically unusual

Recent incendiary comments from Donald Trump and North Korea have spooked investors, but stocks haven’t fallen too severely. That’s somewhat unusual when looking at market reactions to geopolitical events since WWII. As always, it’s worth reiterating that stocks generally go up, even after geopolitical shocks. Geopolitical anxiety has picked up in recent days amid ongoing elevated tensions between the United States and North Korea. But even though incendiary comments from both US President Donald Trump and North Korea have spooked investors (and everybody else), markets haven’t seen a huge drop. South Korea’s markets have seen most of the action, with the won trickling down and the benchmark Kospi stock index falling by a “minor” 1.5% this week. Meanwhile, traditionally safe-haven trades like the US dollar, the yen, and gold have picked up a bit, but not significantly. That relative lack of movement is unusual compared to past market reactions to geopolitical events after World War II, according to John Normand, the Head of FX, Commodities, and International Rates Research at JP Morgan. Normand looked for patterns among major geopolitical events since World War II (starting with the Korean War and ending with Brexit) and outlined a few conclusions in a… Read full this story

• North Korea Experts Can See a Lot in a Hemline
• Report: ‘Squid Game’ an Illegal Hit in North Korea
• North Korea holds artillery fire competition: state media
• North Korea panic: Kim Jong-un turns to China - rogue state in crisis
• 'Like a trip to North Korea': Japan's group-tour plan to restart tourism
• As winter looms, reports of starvation in North Korea
• China must prepare for war with North Korea, top national security experts warn
• North Korea to execute man by firing squad for smuggling 'Squid Game' into country
• The Week Ahead: Market reaction to Melaka state polls outcome, 3Q earnings and October inflation
• Squid Game smuggling North Korean man sentenced to death by firing squad
• North Korean reportedly sentenced to death for smuggling copies of Netflix's "Squid Game"
• JoongAng-CSIS forum warns that North may provoke Biden

The market’s reaction to North Korea this week is historically unusual have 334 words, post on www.businessinsider.sg at August 10, 2017. This is cached page on CHUTEU. If you want remove this page, please contact us.