Geopolitical situation a bigger worry for markets than rate hikes: Analysts

According to reports, North Korea has fired at least one ballistic missile toward its eastern sea, the latest in a series of weapons tests that have raised tensions in the region

An escalation in the already simmering tensions between North and South Korea, China and Taiwan, and Russia and Ukraine could prove to be a bigger worry for the markets over the next few months rather than central bank policy action, said analysts. The markets, they said, are still not fully factoring in this possibility.

"The conflict between Iran and Saudi Arabia is another geopolitical worry. All this will have an economic implication as well, as it will impact the crucial energy supply especially at this time of the year when the winter is likely to be harsh. The food supplies