Gold Price And Yen Gain On New Korea Angst
London (Sept 22) Global equities have retreated a tad overnight as the market purchased safe haven assets, including gold and yen (¥111.82), after N. Korea intensified their threats against the US. The EUR (€1.1957) remains better bid as German voters prepare to go to the polls this weekend.
N. Korea's overnight threats have managed to temporarily divert attention away from this week's monetary-policy decisions that have dominated the markets focus in the past three-sessions.
Expect investors to continue to eye speeches by Fed officials, as they may serve up some clues on what the central bank is thinking after bets for higher rates by year-end were raised following this week's Fed meeting.
In Europe, UK PM Theresa May is set to give a speech on her Brexit strategy in Florence (9:00 am EDT), while Germany is preparing to go to the polls on Sunday, with Chancellor Merkel expected to secure a fourth-term, although she may not win an outright majority.
In Vienna, OPEC prepares to meet today and there is mixed signals on whether they will discuss deeper or longer cuts.
Down-under, New Zealand heads to the polls tomorrow.
Stocks mixed results
In Japan, the Nikkei slipped from its two-year high overnight after N. Korea threatened to test a hydrogen bomb in the Pacific Ocean, again heightening tension with the US.
Despite the rhetoric, Japanese equities have recorded their second consecutive week of gains, led by financial shares, which have found support from sovereign bond yields backing up after the Fed's policy statement midweek. The Nikkei slipped -0.3%, while the broader Topix Japan's fell -0.2%.
Down-under, Australia's S&P/ASX 200 Index added +0.5%, while S. Korea's Kospi index slid -0.7%.
In Hong Kong, stocks posted their biggest decline in a month, erasing this week's gains, as the market cashed out following S&P's downgrade of China's sovereign credit rating and N. Korea's nuclear threats. The Hang Seng index dropped -0.8%, while the Hong Kong China Enterprises Index lost -0.9%.
Source: SeekingAlpha
