Money Markets extend losses on North Korea fears

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

North Korea's ICBM tests may be a deception tactic to hide a much more capable threat

  North Korea's ICBM tests may be a deception tactic to hide a much more capable threat A top missile analyst says the ICBMs North Korea shows off may be propaganda that has fooled experts and the military .Most analysis of North Korean missiles comes from images released from Pyongyang, and they could be purposefully deceptive. The real ICBM program may be a hidden silo-based missile, which would be much more dangerous.North Korea has shocked the world by making huge strides in missile technology since debuting an intercontinental ballistic missile on July 4, but according to James Kiessling, the road-mobile missile may just be an act of deception.

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.

Trump threatens North Korea with ‘fire and fury’ amid nuclear weapon reports

  Trump threatens North Korea with ‘fire and fury’ amid nuclear weapon reports The country is attempting to become a fully-fledged nuclear power. The Washington Post story, citing unnamed US intelligence officials, said the confidential analysis was completed last month by the US Defence Intelligence Agency.Separately, Japan’s defence ministry assessed in a report that it is possible that North Korea has achieved the miniaturisation of nuclear weapons and has developed nuclear warheads.

"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.

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.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!