The summer markets are here, with recent volatility levels at low levels most of the moves that we have seen have been driven by comments from North Korea and the US. Stock markets in recent days have reacted with heavy selling but we are still at record high levels.
North Korea announced on Thursday that it was finalising a plan to fire four missiles near the US territory of Guam, President Trump has also tweeted “Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong-un will find another path!” Trump’s tweet follows his threat earlier this week to rain “fire and fury” on Pyongyang. Russia have also commented, saying the exchange of threats between Washington and Pyongyang “worry us very much”.
Today the US dollar has slipped after disappointing CPI data that missed expectations with bond yields falling, markets are now casting doubts on another rate rise by the Fed in the near future. Looking forward to next week’s agenda, Japan releases their GDP Growth Rate early on Monday and UK Inflation rate & US Retail Sales on Tuesday. Wednesday sees EU Growth Rate numbers and FOMC minutes from the US. Japan’s Trade Balance numbers are released on Thursday along with Australian Unemployment rate with Canadian Inflation data released on Friday.