Money Markets extend losses on North Korea fears

11:36  12 august  2017
11:36  12 august  2017 Source:   Sky News

How Do You Price a Problem Like Korea?

  How Do You Price a Problem Like Korea? Relatively small market moves are "reflective of the extreme difficulty the market faces in pricing in the ramifications of a nuclear confrontation."After a week of escalating tensions between the U.S. and North Korea, some financial analysts are now taking a stab at it.

Fears about Pyongyang’s threat to security added to tensions in a region plagued by uncertainty about the state of the Chinese economy.

Asian equities extended heavy losses Friday as a worldwide sell-off triggered by US President Donald Trump doubling down on his North Korea watchers said equity markets remained focused on the deepening geopolitical crisis, as angry threats from Washington and Pyongyang stoke fears of a

Traders on the floor of the New York stock exchange after Donald Trump's US election victory 9 November 2016 © Reuters Traders on the floor of the New York stock exchange after Donald Trump's US election victory 9 November 2016

Global stock markets have sunk further into the red after Donald Trump ratcheted up his fiery rhetoric over North Korea's nuclear threats.

London's FTSE 100 closed about 80 points, or more than 1%, lower on Friday, adding to a slump of more than 100 points the day before. During the session it sank to its lowest level since May.

There had earlier been falls of nearly 2% on South Korea's Kospi and Hong Kong's Hang Seng, with markets in mainland China and Australia also down.

Traders at BGC Partners in London after Donald Trump's election victory 9 November © Reuters Traders at BGC Partners in London after Donald Trump's election victory 9 November

Wall Street indices opened modestly higher later on Friday as US investors looked for an end to the three-day losing streak.

Elon Musk issues a stark warning about A.I., calls it a bigger threat than North Korea

  Elon Musk issues a stark warning about A.I., calls it a bigger threat than North Korea Tesla CEO Elon Musk fired off a new, ominous warning on Friday about artificial intelligence, saying it was a greater risk than North Korea.Musk—a fierce and long time critic of A.I. who once likened it to "summoning the demon" in a horror movie—said in a Twitter post that people should be concerned about the rise of the machines than they are.

"Of course it's all come at a time when share markets are due for a correction so North Korea has provided a perfect trigger." U.S. crude futures extended losses from Thursday, when they plunged 2 percent on fears of slowing demand and lingering concerns over a global oversupply.

“Of course it’s all come at a time when share markets are due for a correction so North Korea has provided a perfect trigger.” Crude futures extended losses on fears of slowing demand and lingering concerns over a global oversupply.

Global political tensions have seen investors sell off shares as they flee to less risky assets such as the yen and the Swiss franc.

The FTSE's fall was led by the volatile mining sector, with London-listed global commodity firms such as Rio Tinto, BHP Billiton and Anglo American among the biggest losers.

Markets in Italy and Spain also saw big declines and while France's Cac 40 and Germany's Dax also ended the day in the red.

Simmering tensions between the US and North Korea have come back to the boil in recent days after Pyongyang disclosed plans to fire missiles over Japan to land near America's Pacific territory of Guam.

Mr Trump warned Kim Jong Un earlier this week that his country faced "fire and fury".

He has now gone further, saying the warning may not have been tough enough and that if North Korea did what it had threatened, it faced "an event the likes of which nobody's seen before".

Until now, investors have broadly felt able to brush off the rhetoric as sabre-rattling.

But the increasingly bellicose atmosphere, driven by unpredictable leaders on both sides, has seen anxiety escalate.

Shane Oliver, head of investment strategy at AMP Capital in Sydney, said: "What has changed this time is that the scary threats and war of words between the US and North Korea have intensified to the point that markets can't ignore it."

He said the crisis provided a "perfect trigger" for a correction at a time when many markets - including the FTSE 100 - were at or around record highs, leaving them vulnerable to a sell-off if investors think it is time to take profits.

Here’s what a war between North Korea and the USA could do to the global economy .
Tensions escalate between USA and North Korea after threats to US overseas territory of Guam. Any conflict would cause major economic problems across the globe. 

Source: http://uk.pressfrom.com/news/money/-193463-markets-extend-losses-on-north-korea-fears/

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