How to read into the latest market reactions on North Korean threats? - ANZ

Analysts at ANZ noted the latest update on N.Korea.

Key Quotes:

"The White House issued a Statement by President Trump (rather than a tweet) on North Korea that read:

“The world has received North Korea's latest message loud and clear: this regime has signaled contempt for its neighbors, for all members of the United Nations, and for minimum standards of acceptable international behavior. Threatening and destabilizing actions only increase the North Korean regime's isolation in the region and among all nations of the world. All options are on the table.”

This was followed by a statement by the US Ambassador to the United Nations Nikki Haley, who said that the North Korea missile was “absolutely unacceptable and irresponsible... no country should have missiles flying over them like those 130 million people in Japan. It’s unacceptable.” She added, North Korea has “violated every single U.N. Security Council resolution that we’ve had and so I think something serious has to happen.”

While there is some fighting talk in all that, markets seem to have been reassured by the lack of bombastic tweets, comments from the Pentagon that the most recent missile was not a threat to North America or Guam, and better US data overnight.

Or at least that was our read on it!