Rising Tensions Between North Korea And U.S. Pressures Global Markets

Asian and European stock indexes are trading lower on Wednesday and U.S. stock futures are pointing to a negative open following remarks from North Korea’s leaders on Tuesday about the nation “carefully examining” plans for a long range missile strike on Guam, a U.S. territory in the Pacific Ocean.

Earlier on Tuesday, U.S. President Trump responded to a question at the Trump National Golf Club in New Jersey about North Korea’s nuclear capabilities.

President Trump replied that North Korea best not make any more threats to the United States.

“They will be met with fire and fury like the world has never seen.  He has been very threatening beyond a normal state.  And as I said, they will be met with fire, fury, and, frankly, power, the likes of which this world has never seen before” President Trump said.

North Korea defiantly tested 2 intercontinental ballistic missiles last month and has conducted a total of 5 nuclear tests since 2006, resulting in a host of U.N. resolutions and widespread sanctions.

North Korea was unanimously sanctioned on Saturday by 15 countries making up the U.N. Security Council which determined that North Korea shall not supply, sell or transfer coal, iron, iron ore, lead, lead ore, and seafood to other countries, a move that is expected to reduce North Korea’s revenue by approximately $1 billion, one third of its exports and hard currency.

Following President Trump’s “fire and fury” remarks in New Jersey on Tuesday, a spokesman for the General Staff of the Korean People’s Army issued a statement claiming the U.S. has gone “hysteric” and is unaware of the army and people of Democratic People’s Republic of Korea (DPRK).

“The DPKR is an invincible ideological power in which all the service personnel and people are united around their leader in a single mind and a country of an impregnable fortress in which all the people are armed and the whole country has been fortified,” the statement reads.

The conclusion of the statement contains a warning to the U.S. to not conduct a “reckless military adventure” in North Korea and states if the U.S. does so, the “tragic end” of the American empire will be hastened.

On Tuesday U.S. Secretary of Defense Jim Mattis met with Vietnamese Minister of National Defense Ngo Xuan Lich in Washington D.C. where the 2 leaders agreed to take actions to improve defense cooperation, including having a U.S. aircraft carrier visit Vietnam for the first time next year while also increasing information sharing and naval cooperation.

Written and Edited By:

Johnathan Schweitzer




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