Geopolitical concerns continue to hover over the market this week as the U.S. and South Korea began joint military exercises amid threats from North Korea, Prudential’s Chief Market Strategist Quincy Krosby said on her weekly “Connecting the Dots” outlook.
Also, President Donald Trump is scheduled to deliver a major speech tonight about his plan for continued U.S. involvement in Afghanistan.
The annual military exercises in South Korea, scheduled to last about 10 days, began today involving 17,500 American troops and 50,000 from South Korea. North Korea’s state-run newspaper called it “reckless behavior leading to an uncontrollable phase of nuclear war.” The U.S. and North Korea earlier exchanged heated rhetoric this month, with Trump threatening “fire and fury.”
“Obviously it is a sensitive issue, given the back-and-forth we had with North Korea just a short time ago,” Krosby said.
The schedule of economic data releases this week is light, with the focus on housing. The House Price Index will be issued Tuesday, mortgage applications and new home sales Wednesday and existing home sales Thursday. Durable goods orders data is due Friday, and that also will be a focus, she said.
The Jackson Hole, Wyoming, Economic Policy Symposium begins Thursday with central bankers from around the world discussing a broad range of topics. Investors and traders will focus on Fed Chair Janet Yellen and European Central Bank President Mario Draghi, Krosby said. While neither is expected to make any significant comments regarding monetary policy, the media will monitor any remark—official and unofficial—that suggests otherwise, she added.
To talk to Quincy Krosby about her views of the market, contact Lisa M. Bennett or Dara Scerbo.
Read Quincy Krosby’s full Q3 Market Commentary: Third Quarter Checkup.
The views and opinions are those of the author at the time of publication and are subject to change at any time due to market or economic conditions. This is solely for informational purposes. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.