North Korea keeps scaring markets

Due to the Russian report of a North Korean’s missile test that could reach the west coast of the United States, investors start fearing about tensions on Korea Peninsular again. The war game fears combined with U.S. lost 33,000 job may affect the Asian market, which can open differently early on Monday. In my opinion, Shanghai market may open higher after long holiday from its own strong economic data but Nikkei may open lower following Wall Street.
Thai market may also open lower because stock price of oil industry fell and investors are confused by U.S. macroeconomic data. SET may rise up, if Chinese service PMI is higher than 52.7 at 8.45 today. I think the U.S. unemployment rate fell to a 16-year low of 4.2% is positive signal for U.S. economy even nonfarm payrolls lost. Moreover, Caixin service PMI may edge high follow the manufacturing PMI.
The increasing tension on Korea peninsular may pull down the greenback but it may pull up gold price and other low risk assets. If North Korea does the looming missile test South Korea may suddenly respond as well as the USA may also use military respond. As the result, World stock market: Nasdaq, European markets, Nikkei and KOSPI may move flatly or edge lower.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

Olymp Trade Review