Riskier Assets Decline on Geopolitical Rhetoric

German yields are tumbling hitting a 6-week low as safe haven demand has been seen amid the latest flare-up in geopolitical tensions emanating out of the Korean peninsula. The pan-Europe Stoxx 600 equity index is down by more than 1% and S&P 500 futures are down 0.4%, signaling a negative open on Wall Street. Asian stock markets were mostly lower, with Japan’s Nikkei finishing 1.3% in the red, South Korea’s KOPSI 1.1% for the worse, while China’s Shanghai Composite saw a relatively modest 0.2% decline and Australia’s ASX managed a 0.4% rise. European stock markets are trading under pressure as warring words between North Korea and the U.S. take a toll. Pyongyang threatened a missile strike on the U.S. Pacific territory of Guam after Trump made his “fire and fury” threat. Oil prices are higher following a larger than expected draw in inventories.

Continue reading: https://www.iforex.com/news/riskier-assets-decline-geopolitical-rhetoric-40001

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