North Korea Attacks South Korea and Irish Troubles

South Korea's Yeonpyeong Island, near the disputed maritime border with the North, was shelled by the latter today, killing 2 South Korean marines and injuring several others. The attack has been criticised by the United States, Europe and Russia, while Japan is demanding action from both the US and the United Nations. I think China's reactions should be interesting.

Apart from this, the Irish bailout by the EU and IMF appears to be in trouble. This just in from Dow Jones Newswires:

German Chancellor Angela Merkel Tuesday underlined the grave situation facing the single currency in the wake of the financial woes facing Ireland.

"We're in an extraordinarily serious situation, as far as the situation of the euro is concerned," Merkel said during a speech at the German employers association annual conference.

She labelled the Irish crisis "very worrying" but different from that faced by Greece in spring this year.

Thus, financial markets around the world have been rattled by these 2 events today. Interesting times in the markets.