The president of North Korea is doing what he does best. He is taunting his enemies with missiles once again. News reports claim President Un is not happy about the South Korea and U.S. joint military operations going on now, and he is using his shot a missile tactic to show the allies he means business. The recent missile launch that went right over Japan was not the best move he could make at this point in time, but UN doesn’t care. He wants attention, revenge, and some kind of international recognition. China is between a political rock and a hard place because China needs North Korea to help fuel economic growth. But China also needs to support the UN sanctions against North Korea, but Chinese scholars say the Chinese are still supporting their neighbor behind the scenes.
Financial markets are reacting to President Un’s latest missile launch. Dow Jones futures were down by 147 points before the opening bell on Tuesday, and the Asian market was off as well. Japan’s currency is a bright spot for nervous investors who want to park their money somewhere safe. The yen is stronger against the dollar on the forex market. The euro lost ground against the yen as well. Even the Australian dollar took a hit thanks to North Korea itchy missile finger. The South Korean won also took a hit against the yen, and South Korea’s stock market felt the North Korea threat, but the South Korea stock decline was not as bad as some people thought. South Korea’s market lost more than 1.4 percent of its value and Japan’s stock market lost almost 0.9 percent.
The one commodity that usually does well when investor anxiety levels are high didn’t move after this recent incident. Gold prices were off a little after the missile launch, but the price of gold made a comeback a short time later. One currency market manager thinks gold will inch upward on Tuesday. Trump’s negative comments about renegotiating NAFTA didn’t help the financial markets either.
Japan’s Prime Minister Shinzo Abe didn’t hesitate when he said North Korea’s latest missile launch is a serious threat, and stock markets around the globe agree with him. South Korea is ready to hit North Korea with all its missile might, and Trump is waiting for the right time to stop North Korea’s aggression. The North Korea threat is a clear and present danger to stock markets, and to the countries that believe President Un will lose it and go ballistic on them.