November 29, 2021

US-N.Korean historic summit: When Donald met Kim > 12.06.2018 Highlights

US-N.Korean historic summit: When Donald met Kim

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U.S. President and North Korean leader signed a “comprehensive” joint statement after their historic summit in Singapore on Tuesday.

Both leaders committed to work to promote peace and end war games in the Korean peninsula through its denuclearization. Washington committed to provide security guarantees for North Korea. However, the joint statement signed did not mention specific actions on how either goal would be achieved. It was more a symbolic statement. There is no reference to a peace treaty to end the war between the two countries which has not ended yet, at least technically.

The landmark summit finally took place after a lot of back-and-forth, high diplomacy and threats on either side.

Kim said the two leaders had a historic meeting “and decided to leave the past behind. The world will see a major change.” Trump said that relationship between USA and North Korea would be very different.

Nevertheless, the US Secretary of State Pompeo, being more sceptical, said the summit should set the framework for “the hard work that will follow”.

Both Trump and Pompeo stated that sanctions on North Korea would remain in place.

Asian stocks and dollar rise as Trump and Kim sign this “comprehensive” statement. The dollar jumped Oil prices rose as Trump enthusiastically praised his meeting with Kim.

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MARKETS’ reaction to the historic summit

The dollar gave up its early gains, which was the first reaction to the historic summit. It traded lower against its major-traded rivals following the signing of the symbolic “comprehensive” joint statement.

The Sterling inched up a little bit despite soft wage growth/labour data. The pound also gained against the common currency.

The Euro retreated from a three-week high, ahead of this week ECB meeting which may decide to start unwinding its massive bond purchasing programme.

Oil prices inched up as US and Russia output increase.

Gold dropped 0.2% to $1,297.12 an ounce.

Sources: Reuters, Euronews, bbc.com

PLEASE NOTE The information above is not investment advice.