Market Snapshot – Increase in Global Risk Causes Tumult

Stock Markets in a Tizzy

There has been an increase in global risk since this morning as there has been another round of testing of missiles by North Korea and this time, the situation seems to be quite serious. Also, we are seeing Hurricane Harry unleash destruction in Texas and this is also causing a lot of concern on the loss of lives and property. A combination of these factors have led to increase in global risk and this has placed a lot of pressure on the stock markets which have been in the red since the opening of the Asian markets. This situation is likely to continue in the short term as well as the market expects more volatility as we head towards the second half of the week.

Dollar and Gold in Spotlight

The increase in global risks has led to another round of weakening in the dollar and this has helped the safe haven assets like gold and silver to climb. Gold has climbed as higher as 1325 and seems to be very strong for another bout of bullishness and the silver prices have also followed. The oil prices have been moving in the opposite direction as the hurricane in the US has raised some concerns over demand. All this has led to a very volatile market which is quite risky at the moment with the dollar clearly suffering across the board.