North Korea launched a ballistic missile on Wednesday. South Korean military said the missile “May have been launched from a submarine.”
South Korea and Japan are Worried
The National Security Council in Seoul stated its “strong concern” whereas the Japanese Prime Minister Shinzo Abe condemned Pyongyang’s launch, reminding that it was in violation of UN Security Council resolutions. The missile launch came a day after North Korea announced that denuclearization talks would be held on Saturday.
The Institute for Supply Management’s US manufacturing purchasing managers’ index came in at 47.8% in September, the lowest in over a decade. The fall below the 50% figure showed a contraction for the second consecutive month, demonstrating the effects of trade wars on the US manufacturers and their exports.
Weak economic data in the US that depressed stock markets in North America and Asia. In Europe, stocks opened in red.
Trump Blames the Fed
US President Donald Trump immediately put the blame on the Federal Reserve by pointing fingers at what he deems high interest rates.
“As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!” Trump tweeted.
US Oil Stocks Fall
American Petroleum Institute (API) data on Tuesday showed that US crude stocks dropped by 5.9 million barrels in the week ending on September 27. The sharp fall was not in line with expectations for a rise of 1.6 million barrels.
The US Energy Information Administration’s weekly oil inventories report will be released during the day.
Johnson’s Plan on the Table
UK Prime Minister Boris Johnson left the unveiling of a new Brexit offer to the EU to Wednesday. Johnson has insisted if Brussels does not take his proposal into consideration, the UK will stop negotiations and leave the club on October 31.