Originally published by CMC Markets
Calming words from the US Secretary of State helped ease market concerns over potential armed conflict with North Korea. In contradictory moves overnight save haven assets rose alongside industrial commodities. Shares slumped in Europe, but rebounded late in US trading to finish close to flat.
The action sees futures markets across the Asia Pacific region indicating a mixed day. While most are pointing down, safe haven Japan and commodity exposed Australian indices are in mildly positive territory. However the bounce back in US markets may see positive momentum lift all the regional markets by the close.
Gains in copper, oil and gold are likely to buoy resource stocks. Insurers globally are under pressure on the heightened concerns and locally listed re-insures may get caught in the downdraft. Investors are likely to focus on reports from Virgin (AX:VAH), AMP (AX:AMP) and AGL (AX:AGL) today. Trading may also receive support from the Australian dollar, which eased lower despite the commodity surge.