Analysts at ANZ explained that President Trump cancelled his summit with North Korea in a letter.
“President Trump cancelled his summit with North Korea in a letter saying, “based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have this long-planned meeting… You talk about your nuclear capabilities, but ours are so massive and powerful that I pray to God they will never have to be used… If you change your mind… please do not hesitate to call me or write.””
“The statement came after North Korea tore down its underground nuclear test facilities, but lashed out at Vice President Pence and threatened to walk away from the summit.”
“It caused an unsurprising knee-jerk market reaction, including in safe-haven assets such as gold, JPY and CHF.”
“Geopolitics is likely to remain a focus for markets – not only North Korea but also trade tensions with China.”
“It’s hard to know whether denuclearisation of the Korean Peninsula or cutting the US-China trade deficit by USD200m in two years is the more ‘aspirational’ goal.”