Geopolitics is well and truly back in focus with President Trump announcing last Friday that the proposed June 12 summit in Singapore with North Korean leader Kim Jong Un is off. President Trump cancelled his planned meeting with Kim Jong Un citing "tremendous anger and open hostility" in recent statements from Pyongyang. He called the decision a setback for the world, and warned that the US military is ready in the event of an open conflict and has "massive" nuclear capabilities. Trump also said he thinks Kim will ultimately do the right thing, and raised the possibility talks could be revived for the same date or later. Market reaction overall has so far been measured and somewhat contained. Then on Sunday, as quickly as it was cancelled, Trump turns around and says the meeting on 12 June “could” still take place. A US team has since crossed into the North-South demilitarised zone to discuss the prospect with North Korean officials….I hope you all follow Trump on Twitter for the latest geopolitical news.
The week ahead is quiet for the RBA, but contains a few pieces of interesting economic data, appetisers in the lead up to the important March quarter GDP data next week (out on 6th June). Markets will also be focussed on developments offshore (refer comment above).