Dollar rises, stocks inch up as U.S.-North Korea summit gets underway

SYDNEY- On Tuesday, June 12, 2018-The dollar jumped to a 3-week top also the Asian stocks increased up to an anticipated height. U.S.-Korea summit got underway in Singapore, moving to the way towards ending the nuclear stand-off on the Korean peninsula.

North Korean leader Kim Jong Un and U.S. President Donald Trump, shook hands and smiled as they started the new historic summit, just after tensions spiraled in the region over North Korea’s nuclear and missile programs

Trump told Kim “we will have a terrific relationship” amid handshakes, but there was some unease among investors about the outcome of the talks given the tense relations between the two nations. Moreover, about the summit, Trump had told that the meeting could be “work out very nicely” as the countries is trying to lower the differences on how to neglect a nuclear standoff on the Korean peninsula.

Robert Carnell, chief economist Asia-Pacific at ING said, “So today, we have the opportunity for a historic meeting, a possible end to the Korean war, and a possible move to denuclearize, and maybe even demilitarize the Korean peninsula”. He also added, “All of that’s great, but how can you make money from it. Well, the short answer is you probably shouldn’t even try”.

Carnell said that the impact of an end to the nuclear stand-off and a relatively end of sanctions on North Korea is likely to be “marginal” for future trade and corporate earnings.

Instead of a far bigger “existential global threat” was the ongoing tariff dispute, after Trump upset the Group of Seven’s efforts to show a united front, choosing to back out of a previous joint communique.

The meeting between North Korean leader Kim Jong Un and U.S. President Donald Trump drew criticism from France and Germany, as Trump called Canadian Prime Minister Justin Trudeau “very dishonest and weak”.

by Sawan Kumar on June 12, 2018

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