Market reaction to N. Korea nuke test to prove transitory- Citi

Citigroup economists came out with a note on Monday, expressing their take on the market reaction, via Bloomberg, in response to the weekend’s North Korea nuclear test.

Key Points:

The latest nuclear test is crossing a 'red line'

Use past reactions as guide - i.e. reaction likely to prove transitory

Expect tensions tod diffuse quickly

"Unless the global response to this test raises the probability of a military strike or North Korea regime collapse (both unlikely), this time may play out similarly"