Published: Sun, August 13, 2017
Markets | By Noel Gibbs

Dollar at eight-week low vs yen as North Korea tensions simmer

Dollar at eight-week low vs yen as North Korea tensions simmer

Wall Street rebounded on Friday and ended on a good note in a hard week marked by increasing geopolitical tensions: the Dow Jones has taken 0.1% and the Nasdaq up 0.6 per cent.

Biotechnology, tobacco, and transportation stocks also saw considerable strength, while steel stocks extended a recent move to the downside.

Energy stocks fell along with the price of crude oil.

NASDAQ measures a number of indices reflecting the reaction of USA's high tech markets and business environments on the country's political and economic developments which have an impact on high tech markets.

US stocks rose Friday but still notched their biggest weekly loss in months, as investors were shaken by disappointing earnings results and an escalation of threats between the USA and North Korea.

Globally, France's CAC 40 share index fell 1.5 percent by the afternoon; Germany's DAX fell 1.3 percent.

N. Korea tensions rattle stock markets
Trader reaction to company earnings also contributed to the slide on Wall Street, which had been trading in record territory. Benchmark U.S. crude rose 23 cents to settle at $48.82 a barrel on the on the New York Mercantile Exchange.


US President Donald Trump's warning to North Korea has given gold momentum; investors are also awaiting US inflation data.

Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the U.S.is prepared to take military action against North Korea. Hong Kong's Hang Seng Index plunged by 2 percent, while South Korea's Kospi Index slumped by 1.7 percent.

Rising costs for housing, medical care and food helped push the Consumer Price Index (CPI) up 0.1 percent in July, seasonally adjusted, after no change in June and a 0.1 decrease in May, the US Labor Department said.

S&P 500 e-minis were down 10.25 points, or 0.41 percent, with 217,904 contracts traded.

"The market had been complacent for a while regarding headlines from North Korea". Silver also rose, gaining 43 cents, or 2.6 percent, to $16.82 an ounce.

An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 percent, led by Toronto-based Yamana Gold Inc. The Fed, which raised its key interest rate in March and June, has signaled it plans a third rate hike before the end of this year.

Tropical Depression 8 forms in the western Atlantic
The Atlantic could have a new tropical depression in the next few days, and this one could move close to the East Coast. The system had sustained winds of 35 miles per hour with gusts up to 46 miles per hour late Saturday night.


The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. Perrigo rose $1.58, or 2.1 percent, to $78.43.

Shares of Snapchat parent Snap Inc.(SNAP) slid 14% a day after the company's earnings missed forecasts (http://www.marketwatch.com/story/snap-ceos-promise-cant-overcome-declining-ad-rates-stock-heads-toward-new-lows-after-earnings-2017-08-10), and the social-messaging company disclosed that average ad prices fell in the second quarter.

The yield on the benchmark 10-year U.S. Treasury note fell to 2.255 percent from its U.S. close of 2.282 percent on Tuesday. The euro fell to $1.1728 from $1.1757.

Trading was thinner than usual, with Japanese markets closed for a public holiday.

According to analyst Simona Gambarini, the price of gold "tends to rise in anticipation of a conflict but often falls when tensions turn into a full-blown war". Australia's S&P/ASX 200 dropped 1.2 percent.

Stock Futures Lower Again as North Korea Tensions Intensify
In oil, the price of Brent crude sunk by 0.5% to 51.65 U.S. dollars a barrel amid concerns about over supply in the market. About 7.5 billion shares changed hands on U.S. exchanges, well above the 6.25 billion average for the last 20 days.


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