FYI: Global stocks slipped for a third straight day on Thursday after U.S.-North Korea nuclear talks abruptly ended without a deal and weak economic figures pressured Asian indexes.
Equities sold off across most of the region, amid confusion in Vietnam after President Trump appeared to cut short a summit with North Korean leader Kim Jong Un as the parties failed to reach an agreement on curbing the Asian country’s nuclear-weapons program.
South Korean assets dropped, with the Kospi benchmark down 1.8% and the country’s currency down 0.5% against the U.S. dollar. Kospi-listed construction and equipment stocks—which are sensitive to the prospect of a closer economic partnership between the North and South—were hit particularly hard.
U.S. futures also slipped after Mr. Trump’s press conference, putting the S&P 500 and the Dow Jones Industrial Average on course to open 0.4% lower, and the Nasdaq-100 set to fall 0.5%.
The WSJ Dollar Index slipped 0.1%, shedding the gains it made late Wednesday in the wake of Federal Reserve Chairman Jerome Powell’s comments that the central bank was close to announcing plans to end its bond portfolio runoff.
The price of gold, a haven asset sensitive to geopolitical uncertainty, climbed in the wake of Mr. Trump’s remarks that “sometimes you have to walk,” and were last 0.2% higher at $1,323.50 a troy ounce.
The Japanese yen, also a haven asset, pared some its earlier losses on the news, and was last down 0.2% against the U.S. dollar. That reflected “some disappointment following reports that President Trump’s summit with North Korean leader Kim Jong Un has collapsed without an agreement,” according to Fritz Louw, currency analyst at MUFG in a note.
Japan’s Nikkei index had already closed 0.8% lower on fresh growth fears, with industrial production figures for January falling short of the market’s already-low expectations.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/global-stocks-slip-after-u-s-north-korea-summit-collapses-11551344796Bloomberg:
https://www.bloomberg.com/news/articles/2019-02-27/asian-stocks-set-for-muted-start-treasuries-slip-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-square-stock-monster-beverage-stock-box-stock/CNBC:
https://www.cnbc.com/2019/02/28/stock-market-dow-in-focus-after-trump-kim-summit-ends-with-no-deal.htmlEurope:
https://www.cnbc.com/2019/02/28/european-markets-eye-us-china-trade-news-and-geopolitics.htmlAsia:
https://www.marketwatch.com/story/asian-markets-mixed-amid-global-geopolitical-uncertainty-2019-02-27/printBonds:
https://www.cnbc.com/2019/02/27/bonds-traders-await-another-powell-speech.htmlCurrencies:
https://www.cnbc.com/2019/02/28/forex-markets-dollar-us-china-trade-geopolitics-in-focus.htmlOil:
https://www.cnbc.com/2019/02/28/oil-markets-us-crude-production-asia-factory-output-in-focus.htmlGold:
https://thereformedbroker.com/2019/02/27/how-to-follow-the-economy/Current Futures:
https://finviz.com/futures.ashx
