Geopolitical tensions surrounding North Korea dominated yesterday’s trading session. However, market moves were contained following a winding back in rhetoric by US Administration officials. In this high stakes geopolitical poker round it appears both players were ‘playing the board’ and a ratcheting down of tensions appears to have occurred. Although risk aversion was felt in Europe, the toning down of language saw a recovery in the US. This is probably best seen in equities with the Euro-Stoxx down 1.3%, but the S&P500 closing to be broadly unchanged. Risk haven currencies were bid, with the Swiss Franc +1.1% and Yen +0.2%, though the US dollar (DXY) was broadly unchanged. Gold was up 1.7%, while the VIX hit a still low 11.11.