North Korea Brings More Uncertainty… Uncertainties Create Opportunities
What’s the story?
Yesterday morning North Korea launched three projectiles off its east coast towards the Sea of Japan.
Since then markets have been reacting across the globe! From stocks, bonds and commodities there is movement everywhere.
How does this create uncertainty?
North Korea’s missile launch was a prelude to more military operations directed at the American territory of Guam, North Korean state media warned.
The intermediate-range missile, identified by the North Koreans as the Hwasong-12, flew over Japan, further fueling tensions between North Korea and the United States and its allies, Japan and South Korea.
Fears of a conflict involving major economies have now increased, bringing uncertainty to financial markets due to their potential impact on economic growth.
How does this affect the stock market?
This uncertainty has been bad for stocks so far, as many investors have moved out of stocks and into government bonds and gold as a result of the launch.
This teamed with Hurricane Harvey and its potential effect on the US economy has therefore set the investment market into a state of panic.
How can Trading.co.uk help mitigate risk and spot opportunities?
It is important now, more than ever during this uncertainty to keep one step ahead of the latest market movements. Trading.co.uk’s data collection engine collects and process data from millions of sources every day, providing ever-growing coverage of articles, stories, and tweets.
From this, our investor AI is able to process the data in real-time, providing users with the latest breaking and social news. Being alerted to events which bring uncertainties, such as the North Korean missile attack, can help both mitigate risk and surface potential opportunities. A heads up of the uncertainty would allow investors time to reconsider their current holdings, as well as alert users to possible opportunities arising as a result of the uncertainty.
Author- Becki Leighton from Trading.co.uk