Just as news reports relating to the performance and plans of particular companies inevitably influence the movements of particular stock prices, so do developments of more general kinds motivate the markets. In recent weeks, for example, investors everywhere have felt the impact of a number of global-scale developments regardless of which specific stocks they focus on.
A look at the Twitter profile for Rockwell Trading will prove that geopolitical news can move the markets in profound and unavoidable ways. Developments in the situation involving North Korea, as reports written and linked by analysts at that company make clear, have been some of the most influential of all in recent times.
Kim Jong Un Influences Stock Trading Worldwide with Every Pronouncement
It might be thought that the cloistered, closed-off nation of North Korea would not be an especially influential one. Decades ago, the dictator who turned it into an independent country discovered, however, that sufficiently loud talk could pay real dividends.
With a lack of especially fertile land and international relationships that are never more than strained at best, North Korea has, for a long time, had great trouble feeding its own people. From a not-so-distant famine that killed millions to struggles with everyday sustenance that never seem to recede, aid from elsewhere has proved to be critical to keeping the average North Korean alive.
Just like his predecessors, present-day North Korean leader Kim Jong Un has made heavy use of the diplomatic cudgel as a way of keeping the assistance flowing. Whether to secure more aid when times are especially lean or to soften the blow of sanctions, he has been making threats of military aggression ever since he took office.
Investors Feel Forced to Gauge and Price the Likely Impact of Each New Threat
While most investors would rather ignore such issues, if that were practical, there can be no denying that the prospect of war is one that must be accounted for in trading on stock markets worldwide. As the Rockwell Trading reports make clear, each new bit of verbal aggression from Pyongyang results in some kind of movement on the markets. That is essentially unavoidable even if most traders have learned to discount the likelihood of those promises turning into action.