Overnight bulletin summary
Global equities trade higher amid easing geopolitical tensions Pound tumbles on weaker than expected inflation data Today’s calendar includes US retail sales, Empire Fed, import prices, NAHB, and API crude oil inventories Global stocks and US futures are up for a second day, with the VIX sliding 0.65 vols to 11.68 (-5.2%) and haven assets dropping, after a KCNA report report suggested North Korea had pulled back its threat to attack Guam after days of increasingly bellicose “fire and fury” rhetoric with President Trump, and hours after China took its toughest steps to support U. N. sanctions against Pyongyang, while the possibility of a Sino-American trade war was played down. The report, from KCNA on Tuesday, said Kim praised the military for drawing up a ‘careful plan’ to fire missiles toward Guam. Kim was cited by KCNA saying he would watch the U. S.’s conduct ‘a little more.’
“There is a more relaxed attitude being taken towards the Korean situation in markets. With the report North Korea has put its plans on hold, there is a sense of stepping back from the brink,” Rabobank analyst Lyn Graham-Taylor said.
This post was published at Zero Hedge on Aug 15, 2017.
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