Friday 22 September 2017

Korea crisis rattles markets in Europe and Asia

The North Korean government has been testing ballistic missiles
The North Korean government has been testing ballistic missiles
Donal O'Donovan

Donal O'Donovan

The escalating tensions in Korea have pushed stock markets in Europe and Asia lower this morning as investors pile into so called safe haven assets.

In the US markets are closed for Labour Day. Elsewhere, stock markets fell and the yen, gold and sovereign bonds all rose. In Dublin the Iseq index was 0.50pc lower after Monday's open - in line with European peers.

(Stock picture)
(Stock picture)

Japan’s Nikkei lost almost 1pc overnight, and the Yen gained along with the Swiss franc - both seen as havens in any markets crisis. 

The situation in Korea is increasingly tense. US president Donald Trump said on Sunday that economic sanctions could be targeted at China, for failing to reign in North Korea. That followed North Korea's latest nuclear test on Sunday.

The White House said any nation doing business with Kim Jong Un’s regime would be hit with economic sanctions and trade embargoes, and warned the US has “many military options.”

South Korea has ramped up its missile defences, and the country's central news agency reported today that North Korea appears to be preparing for the launch of a ballistic missile.

Markets to date have shrugged off tensions between the Trump White House and North Korean dictator Kim Jong Un, but have become increasingly nervous - seen in increased hoarding cash rather than financial assets and a switch into the bonds of governments seen as low risk.

Online Editors

Also in Business