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Issues with North Korea
Different news, events and build stronger biceps political rumors can affect your trades if you are day trading futures. This has been apparent recently as talks between the United States and North Korea have been in the focus of the American consumers.
To give a little history behind this, North Korea has been more or less against coming anywhere near talks with leaders from the United States without a weapon readily available. This all changed in the past months, as President Donald Trump negotiated a meeting with North Korean leader Kim Jong Un, which was set for the 12th of next month.
Trump Cancels the June 12th Summit
This summit between the two nations (with South Korea in attendance as well) was cancelled on Thursday, May 24. President Trump announced this via his twitter feed:
“I have decided to terminate the planned Summit in Singapore on June 12th. While many things can happen and a great opportunity lies ahead potentially, I believe that this is a tremendous setback for North Korea and indeed a setback for the world…,” Trump said.
While the announcement came as a shock to the entire world, there were warm and positive feelings to follow.
“We express our willingness to sit down face-to-face with the U.S. and resolve issues anytime and in any format,” said Kim Kye Gwan, a senior North Korea foreign ministry official, in a statement published by North Korea’s official state media.
Trump followed his tweet by saying he was glad to hear a positive message from North Korea and looked forward to meeting in a summit setting in the near future.
“Very good news to receive the warm and productive statement from North Korea. We will soon see where it will lead, hopefully to long and enduring prosperity and peace. Only time (and talent) will tell!” Trump tweeted.
How does this affect those who are day trading futures?
Just like any type of announcement made by a high-ranking government official, Trump’s tweet sent stocks plummeting on Thursday. However, this down trend retraced a bit as feelings didn’t seem to be as tense as the day moved along.
On top of this, crude oil futures fell 3.3%. This was due to the Organization of the Petroleum Exporting Countries reducing oil production by up to one million barrels per day. Crude oil prices have already risen 13% this year and look to only increase.
Day Trading Futures | In Conclusion
“If the Saudis do lift oil production, that could be the news of the day. It may result in a weak patch for the energy sector, but for the broader market that could be offset by a rise in sentiment if it results in gas prices falling going into the summer driving season,” said John Augustine, chief investment officer at Huntington Private Bank.
“There’s still a lot of questions about geopolitical issues with North Korea. Recent developments have seemed positive, but there’s a big question of what the sentiment is going to look like during the long weekend. The question for investors is whether they should wait until Tuesday to see what happened over the weekend and make decisions then.”