Investors Turn Cautious as Geo-Political Tensions Grow

Wall Street and other equity markets will be in the spotlight as investors continue to react to the growing tension between the U.S and North Korea. The U.S Dollar and the Yen have both acted as a safe-haven since last night as geo-political tensions have mounted.

Political Tension Dominate Trading, U.S. Dollar Stronger

While economic data like Final Wholesale Inventories and the Unit Labor Costs statistics will be released from the U.S today, investors will not be faulted for keeping their eyes on the growing geo-political tensions between the States and North Korea. Wall Street turned in slight losses yesterday and early calls for equities from the Futures Markets indicate a negative opening. The U.S Dollar has been strong against the Euro and Pound as safe-haven trading has risen.

North Korea Creates Nervous Markets, Yen Acts as Safe Haven

The Asian markets declined today as investors reacted wearily to the growing tensions between the U.S and North Korea. Japanese and Korean equities sold off, and in a sign of nervousness the Yen has gotten stronger against the U.S Dollar. Inflation data from China came in slightly below its expectations today, but the slight miss in Consumer Price Index was not significant. Asian markets will react in the coming days to the escalation in rhetoric from North Korea and experienced traders will be tested.

Italian Data Shows Improvement, Euro Slides against U.S Dollar

European equities have opened trading with losses as they react to the strong selling in Asia and geo-political concerns. Italian Industrial Production numbers turned in a better result this morning with a gain of 1.1%. However, the Euro has been under pressure against the U.S Dollar early in fast market conditions. French Industrial Production numbers will be released tomorrow.

Speculation in Gold Awakens, Traders Tempted by Upside  

Gold saw early buying today in the wake of safe-haven speculation. The precious metal is near important resistance levels as traders have pushed Gold above 1270.00 U.S Dollars. Gold will remain volatile the remainder of the day and traders may be tempted to look for more upside in the short-term.

Yaron Mazor is a senior analyst at SuperTraderTV.

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