Ignoring unrest will cost markets dear
After North Korea's second nuclear test on Monday, Asian markets finished slightly higher. But ignoring geopolitical risks could cost investors dear.
As with last year's Mumbai terrorist attacks and war in Georgia, markets remain concentrated on the next set of economic data, says John Foley on Breakingviews. Following North Korea's second nuclear test on Monday, Asian markets finished slightly higher, with South Korea's finishing flat after falling sharply earlier in the day.
Asian equities were down around 0.5% on Tuesday after North Korea fired two short-range missiles. But investors "should be wary of ignoring underlying geopolitical risks".
Markets are far too complacent, agrees Allister Heath in CityAM. North Korea's latest blast was far more powerful than its first and suggests Western containment has "completely failed".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Meanwhile, Iran on Monday rejected calls to stop its nuclear work and ruled out talks. It has a missile with a range of 2,000km, which would put Israel and US Gulf bases within reach. "There is a real risk of real trouble" threatening the "liberal international trading order".
Yet "it feels just like the world economy in 2006", when most were confident that the credit markets were safe barring extreme events. We know how that turned out.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Revolut finally bags a UK banking licence – what next for the fintech?
Revolut has finally been granted a UK banking licence following three years of negotiations with the regulator
By Kalpana Fitzpatrick Published
-
Could Labour impose a “double death tax” of more than 50%?
Speculation is mounting that capital gains tax will be reformed in the Budget - and one option is to charge bereaved families the tax on top of inheritance tax. We explain how it could work
By Ruth Emery Published