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Analysis: South Korea Sees Hope and Threat in Mixed Message From North’s Kim | World News

Analysis: South Korea Sees Hope and Threat in Mixed Message From North’s Kim | World News

SEOUL (Reuters) – South Korean officials have seized on conciliatory comments by North Korean leader Kim Jong Un on the weekend as a sign that tension could be easing but also worry the huge number of rockets he showcased is evidence that peace may be elusive.

Kim sent mixed signals as he addressed an unprecedented night-time military parade early on Saturday, wishing the neighbouring Koreas would “hold hands” again after the novel coronavirus pandemic is over.

While much of the world was captivated by the appearance of a new intercontinental ballistic missile (ICBM), officials in South Korea were far more concerned by the display of new multiple launch rocket systems (MLRS) and fast, manoeuvrable short-range missiles that would be ideal for striking targets in the South.

“The parade revealed not only an advanced ICBM but also MLRS that pose a direct threat to South Korea,” said South Korean opposition leader Kim Chong-in.

“They’ve not changed, their threats have grown even bigger.”

South Korean ruling party leader and former prime minister Lee Nak-yon said he took hope from Kim’s overture to the South as a “positive sign” but worried about what the display of new weapons said about North Korea’s intentions.

“North Korea showed advanced weapons including a new ICBM, which indicated it has not abandoned its resolve to develop weapons of mass destruction, and those weapons can threaten peace on the Korean peninsula,” Lee told a party meeting.

November’s U.S. election is compounding the uncertainty especially as the tone of ties between the two Koreas is often set by the state of North Korea’s relations with its old enemy the United States.

When a landmark summit between Kim and U.S. President Donald Trump in 2018 brought an unprecedented easing of tension between those two countries, North Korea’s dealings with South

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Third-Quarter 2020 Market Commentary: Despite Uncertainty Around U.S. Election And Hard Brexit, Hope Springs Eternal For COVID-19 Vaccine And Government Relief

Third-Quarter 2020 Market Commentary: Despite Uncertainty Around U.S. Election And Hard Brexit, Hope Springs Eternal For COVID-19 Vaccine And Government Relief

Data Source: Bloomberg

Source: PxHere

3D Note: As part of our ongoing commentary concerning the coronavirus global contagion and its impact on human and global markets, we remind readers that the situation remains fluid as evidenced by volatile market reactions to most new developments, although the pace of these reactions seems to have slowed down from March/April. In addition to our bi-monthly articles and periodic podcasts, 3D has started publishing mid-month updates to our advisor partners as we navigate through the coronavirus pandemic. Please contact us if you would like to be added to the distribution list.

Market action during the third quarter was largely uneventful despite a moderate pickup in volatility and a “pause” in the global reflation trade. The first two months saw rallies in the global reflation trade, broadly represented by growth technology stocks, emerging markets, commodities/non-U.S. currencies, and corporate credit, only to see investors back away from this trade in September due to technical reasons (e.g. over-exposed long positioning in large-cap technology stocks via call option purchases and speculative non-commercial long positioning in EUR/USD) and diminishing prospects over a second U.S. pandemic relief spending program as well as rising prospects over Hard Brexit. The end of the quarter saw elevated (i.e. buy-the-dip) risk sentiment after having peaked in mid-August, prior to the early September sell-off (we wrote about this in peak in investor sentiment in mid-August titled “Market is Euphoric”).

The furious global technology growth rally that characterized the early quarter advance spilled over into the first week of September before the “trade” unwound itself following reports of a large options “whale” (later to be revealed Softbank – Japan’s publicly-traded venture capital fund) having bid up single stock call options on key technology stocks, forcing options market-makers to buy the underlying stocks in order to

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