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The Buzzing country: North Korea

After every day or two a news comes in related to North Korea and market reacts sharply to it. The latest news came yesterday as North Korea confirmed that it tested a nuclear bomb which created earthquake of magnitude 6.3. US already warned North Korea not to do all these stuffs related to nuclear tests but all the warning has been neglected by the other side. Kim Jong- un is not listening to any one and he continues to do what he want to do. He is also even threatening to US and probably he is ready for a nuclear war. Donald Trump reacted to this test and is trying to find a way how to counter this without getting involved in a war. He asked to stop all trade with any country doing business with North Korea. Probably Trump is hinting towards China which is the lone country who supports North Korea behind the curtains.
US along with his allies called for an emergency meeting on Monday to discuss about all options available. The fear of a war cannot be ruled out and if this happens it will be a nuclear war which is not good for any of the country in world. US will probably like to counter this by some alternatives but I have doubt that North Korean Master Kim Jong un will stop this. He will continue to do what he wants to do.
Market reacted to yesterday’s nuclear test sharply and a sell off triggered from all around the corner and Gold is trading around 1335 in comex almost up by 1%. MCX gold also touched a high of 30k mark which is highest in last one year.  Indian equity market is also trading with a negative sentiments and stock specific approach can be done at present scenario. A correction in equity market cannot be ruled out which could touch a mark of 9500 in short term if global sentiments doesn’t ease out.

We keep our fingers crossed for peace around the world but a wild dictator always requires a hunter to be treated with.

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