North Korea postpones talks with South Korea and reconsiders summit with the USA
North Korea cancels talks with South Korea, scheduled for today, Wednesday. The meeting would take place in the Peace House in Panmunjom. High-level officials were to discuss further action for the implementation of “Panmunjeom Declaration for Peace, Prosperity and Unification of the Korean Peninsula”.
Two Koreas leaders signed the declaration following the historic inter-Korean summit back in April.
Media report that S. Korea took the decision due to the ongoing joint military exercises conducted by the USA and North Korea. North Korea’s state news agency says that this joint military drill is considered “provocation” and practice for invasion. However, United States and South Korea stated that such defensive exercises are part of the ROK-US alliance’s annual routine.
Furthermore, S. Korea threatens to suspend the planned summit with the US President as well. This meeting is scheduled for the 12th of June, in Singapore. A senior North Korean official said that “we don’t want U.S. Summit focused only on denuclearization”.
The 28 EU leaders are going to discuss Iran economic sanctions on Wednesday, They will focus on the options they have in order to protect the EU companies doing business with Iran. German Chancellor Merkel said that the best way to address concerns regarding the role of Iran in the Middle East is in the light of 2015 Iran Deal. Europe offers no guarantees. However, EU leaders admitted that they would try to preserve the accord even after Washington’s recent decision.
MARKETS
Strong USA data released on Tuesday resulted in gains for US Treasury Yields. Correspondingly, US Dollar inched up higher, close to a five-month high. The greenback rose against its rivals. It also rose against Yen, although US-China trade tensions seem to soften.
Euro pared back gains, dipping below $1.18 as political developments in Italy and debt concerns affected the common currency. Euro slid to a five-month low. It also fell against Swissy.
The Swiss franc strengthened against the euro on Wednesday, following its biggest increase in one day, on Monday, against Euro since February.
The Yen remained almost unchanged post soft Japan data.
Sterling pared back gains, towards its lowest point of the year as worries about Brexit resurfaced. It also traded flat versus the euro.
Gold inched up after dipping to new 2018 low. Stronger US Dollar and rising US Treasury yields affected the safe-heaven asset.
Oil prices moved lower, close to 3-1/2 highs. Supply concerns in conjunction with tension in the Middle East are important determinants.
Sources: Reuters, Euronews, CNN Politics
PLEASE NOTE The information above is not investment advice.