Geopolitical risk weighs on markets
When two or more major powers get confrontational, the repercussions can impact bourses globally
GEOPOLITICAL risk has rarely featured as a significant factor in daily stock market trading over the past few years. Other than Greece's financial problems and the occasional temporary wobble brought on by the "Brexit" vote, North Korean missile tests and the Trump US presidential win, markets have been more concerned with earnings, interest rates and the economy than any potentially destabilising geopolitical developments.
Whether or not the present situation will prove any different will only become obvious in the days ahead, but for now, Middle East tensions are said to be unnerving markets following last Friday's US strike on Syria and news that the US has now deployed an aircraft carrier to Korean waters.
As a result, the Hang Seng Index opened weaker and although it managed an afternoon rebound, it still ended 0.7 per cent weaker. Similarly, the Dow futures first lost 50 points but at 5pm had regained about 30 of those points.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Vietnam delays launch of new stock trading system
Tesla’s plan for affordable cars takes page from Detroit rivals
Meituan to debut in Riyadh as expansion beyond China quickens
Mapletree Industrial Trust to distribute S$13 million of divestment gains over next 4 quarters
K-pop agency Hybe’s internal strife wipes out 1.2 trillion won
Beijing city to subsidise domestic AI chips, targets self-reliance by 2027