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

Stocks plunge over North Korea tensions

Stocks plunge over North Korea tensions

London stocks stumbled lower as Thursday's session was dogged by continued geopolitical tensions over the US-North Korea situation, uninspiring United Kingdom economic data and a heavyweight bunch of stocks going ex-dividend.

On Thursday, in response to North Korea's threat to fire missiles at American targets in the Pacific, President Trump said that if Pyongyang "does something in Guam, it will be an event the likes of which nobody has seen before - what will happen in North Korea".

Stocks tumbled today after President Donald J. Trump said his "fire and fury" comment to North Korea "maybe wasn't tough enough".

"If the market truly believed the North Korea reaction was imminent, I think it would be down a lot more than it is", said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

The S&P 500 has hadn't a single day move of more than 0.5 percent since mid-July and has fallen more than 1 percent only twice this year.

On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928.

Elneny assists as Arsenal clinch thrilling opening day win over Leicester City
Arsenal and Leicester City face off in their Premier League opening clash at the Emirates Stadium on Friday night. Mohammend Elneny placed a superb cross to Lacazette who flicked the ball ointo the back of Leicester City's net.


Frankfurt's DAX 30 was 0.4 per cent lower at 11,961.60 points.

Gold hit a two-month high of US$1,278 an ounce amid the nervousness.

About 15 minutes into trading, the Dow Jones Industrial Average had dropped to 21,947.15, down 0.5 percent from Wednesday's close, falling back below the 22,000 mark it first broke through on August 2.

The Nasdaq Composite was down 37.30 points, or 0.59%, at 6,315.03.

Retailers' results are being keenly watched by investors to gauge the companies' strategy to counter No. 1 online retailer Amazon.com's growth.

Shares of Kohl's were down 8.4%, while Macy's fell 4% after the department store operators reported a fall in sales.

Sharad Yadav Attacks Nitish Kumar, Says JD(U) Is My Party Too
During his Jan Samvad programme in Bihar earlier this week, Yadav criticised Nitish for his decision to join hands with the BJP. Party leader KC Tyagi said Ansari has been "suspended from the parliamentary party" for attending the meeting.


Data showed US producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week. Hong Kong's Hang Seng Index plunged by 2 percent, while South Korea's Kospi Index slumped by 1.7 percent.

Blue Apron shares hit a record low at US$5.03 after the meal-kit delivery service provider reported a bigger-than-expected loss in its first quarterly report as a public company.

The consumer price data, which pointed to weak inflation, could cause the Federal Reserve to hold off from raising rates again this year.

Perrigo surged 16.08% after the drugmaker raised its full-year adjusted profit forecast.

Advancing issues outnumbered decliners on the NYSE by 1,432 to 1,310. On the Nasdaq, 2,082 issues fell and 669 advanced.

Malayalam actor Dulquer Salmaan turns to Bollywood, to debut alongside Irrfan Khan
The film will go on floors in September first week and the major part of the film will be shot in Kerala. Mithila is best-known for featuring in web series' like Girl In The City and Little Things .


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