North and South Korea Playing Nice

The US equities markets were somewhat volatile today as traders squared away positions after an eventful week. In particular, the sudden development of peace talks between North and South Korea, with the proposal of full denuclearization of the peninsula being on the agenda, has created a real possibility for increased political agreement and a great reduction of tensions in east and southeast Asia, as well as potentially improved relations between the US and China as well as Russia if denuclearization takes place. The VIX was down substantially, while the US dollar initially rallied. Here’s what to expect.