The stock market is hitting new highs today as fears surrounding the situation in North Korea and fears about the impact of Hurricane Irma lessen. As another weekend has gone by without the North Korean military launching another missile test, the bulls are back in control once again. This has gone far beyond the US stock market. Both the Japanese and British markets have popped to session highs with the Hong Kong and South Korean not far behind.
The Associated Press said, “North Koreans observed the country’s 69th founding anniversary with celebrations that included laying flowers and bowing at statues and portraits of past leaders. But Pyongyang did not carry out another test of its developmental intercontinental ballistic missile, as South Korea’s government had warned it might do. Attention now moves to the United Nations, where the United States has called for a vote later Monday on new sanctions.”
Outside of North Korea, the events surrounding Hurricane Irma are now coming to light. Insurance companies are preparing to tally up the costs of the storm that rocked the Caribbean, Puerto Rico, Cuba, and Florida over the last few days. Downed power lines, flooding, massive wind gusts, and closures seem to be just the start. More than 3 million US homes are without power and though another storm surge could be in the making, the markets remain positive.
Much of the outlook on the storm has to deal with hopes that Hurricane Irma will be less devastating than though. This is also helping to push stocks higher, with insurance companies among the top risers in the market on Monday.
Naeem Aslam of Think Markets explains:
Investors are feeling somewhat relieved today after the most dire predictions in terms of a disaster caused by Hurricane Irma have evaporated. The damage caused by Hurricane Irma is still colossal as streets have been changed into rivers and nearly 3 million people are without any power.
THE MORNING REPORT
Start your workday the right way with the news that matters most.
However, thankfully, the overall impact of Irma is falling short of prediction. It is important to keep in mind that the full damage picture will still be colossal.