Geopolitical risk weighs on markets

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.