Monday, December 19, 2011

impact Kim Jong Il Death on stock market

impact Kim Jong Il Death on stock market ; Emerging-market stocks fell, adding to last week’s losses amid concern the death of Kim Jong Il will increase tension on the Korean peninsula and after Fitch Ratings warned it may downgrade European nations.

Investors also weighed the potential consequences of the death of North Korea's absolute ruler, Kim Jong Il. The announcement, made Monday by North Korean state television, raises the spectre of more instability on the divided Korean peninsula.

Kim, 70, died on Dec. 17 from a heart attack, the official Korean Central News Agency said today. A government statement called on North Koreans to “loyally follow” his son, Kim Jong Un. Huneed Technologies (005870) led gains among South Korea’s defense- related companies in Seoul trading.

Analysts warn Kim's death could cause an uncertain power transition and put the brakes on talks aimed at getting the secretive communist state to give up its nuclear weapons.

Kim Jong Un, the supreme leader's untested third son and heir-apparent, is expected to want to consolidate his power and dispel any notions of weakness.

But after Asian indexes closed lower, European stocks recovered, with Germany's DAX up 0.8 per cent Paris' CAC 40 index rose one per cent and Britain's FTSE lost 0.1 per cent.

Kim's death overshadowed what already was a gloomy start to the week after Fitch warned after the market close on Friday that it may downgrade the credit ratings of heavyweights Italy and Spain, as well as Belgium, Cyprus, Ireland and Slovenia.

EU finance ministers will discuss later Monday how much money their countries will lend to the International Monetary Fund in a conference call. For the latest updates on the stock market, visit Stock Market Today
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