A woman watches a news program reporting North Korea’s firing unidentified projectiles with a file image of North Korean leader Kim Jong Un, in Seoul, South Korea, Thursday, Nov. 28, 2019. | Source: AP Photo/Lee Jin-man
- Dow Jones Industrial Average (DJIA) futures fell 100 points on Thanksgiving Thursday.
- North Korea reportedly fired two short-range missiles into open waters near Japan.
- Geopolitical tensions flare for Trump after his Hong Kong bill threatens to derail US-China trade negotiations.
Dow Jones Industrial Average (DJIA) futures took a 100 point hit on Thursday morning. While the US stock market is closed for Thanksgiving, traders are still active on the futures market.
Geopolitical tensions flared across Asia this morning as North Korea reportedly fired two missiles into international waters near Japan. Kim Jong Un’s missile test is a clear warning to Trump. Two years since the infamous “fire and fury” incident, the two superpowers face a looming end-of-year deadline over nuclear talks with no agreement in place.
The US will face a “great threat” if it does nothing, a rep from North Korea’s State Affairs Commission said earlier this month, adding:
We, without being given anything, gave things the US president can brag about but the US side has not yet taken any corresponding step.
The missile test comes just hours after Trump signed two bills into law supporting Hong Kong protestors. The move is likely to anger China and weaken Xi Jinping’s image at home. Chinese spokespeople have already vowed countermeasures which may threaten trade deal progress.
Dow futures in triple-digit plunge
Dow futures contracts dropped as much as 100 points on Thursday as traders struggle to hold onto Wednesday’s record highs.
S&P 500 futures and Nasdaq Composite futures fell 0.3% each. Bitcoin bounced back to $7,458.
North Korea missile test: a message to Trump
Kim Jong Un has given Trump until the end of the year to wind down the economic sanctions on his authoritarian state. Bloomberg sources claim that Kim Jong Un has grown frustrated by the lack of progress from the US after the largely ceremonial meeting at the DMZ.
A spokesperson for the State Affairs Commission – an institution run by Kim – said Trump faces a “great threat” if it does nothing.
It’s been two years since the infamous “fire and fury” incident where North Korea tested a ballistic missile capable of reaching the US. The years since saw a diplomatic truce between Trump and Kim, but the two sides still don’t agree on the issue of denuclearization.
Trump riles China over Hong Kong
The North Korea missile adds yet more pressure on Trump after he angered China late on Wednesday night. The president passed two bills in support of Hong Kong protestors.
I signed these bills out of respect for President Xi [Jinping], China and the people of Hong Kong. They are being enacted in the hope that leaders and representatives of China and Hong Kong will be able to amicably settle their differences, leading to long-term peace and prosperity for all.
China’s Ministry of Foreign Affairs condemned Trump’s “sinister intentions” for interfering with Hong Kong. Analysts believe the move may weaken Xi Jinping’s image in China and trigger a series of countermeasures in the ongoing trade war.