Geopolitical tensions related to N......>

NORTH KOREA: Geopolitical tensions related to N Korea remain high after reports

the country tested a hydrogen bomb that caused an a 6.3 magnitude earthquake

late Saturday (03:30:01.2 UTC). Rates likely to start off with safe-haven bid

for Asia/London sessions while US markets reopen Tuesday after Labor day

holiday. Multiple wire stories prior to H-bomb test. BBC cited N Korea saying

the new multi-functional thermonuclear bomb "can be loaded on to a ballistic

missile," BBC added "there were no independent verification of the claims."

German Chancellor Angela Merkel stressed diplomacy over military action,

Bloomberg reported Sunday, after last weeks missile test that flew over northern

Japan. In that vein, Saturday Telegraph article discussed "sanctions are the

West's biggest weapon against North Korea - but the most difficult to enforce."

Meanwhile, Yonhap News reported Sunday that the U.S. is "discussing the dispatch

of F-22 and F-35B fighter jets on a rotational basis as part of efforts to boost

extended deterrence against the North's threats." That said, the Wall Street

Journal reported Sunday that the Trump administration is considering "to

withdraw from a five-year-old bilateral trade pact" w/S Korea.