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

Stocks slide on continued concern over tension between U.S. and North Korea

Stocks slide on continued concern over tension between U.S. and North Korea

Secretary of State Rex Tillerson later insisted the US isn't signalling it's about to mete out a military response despite threats from North Korea suggesting it could attack Guam, a USA island territory in the Pacific. Trump's comments came after a Washington Post report (https://www.washingtonpost.com/world/national-security/north-korea-now-making-missile-ready-nuclear-weapons-us-analysts-say/2017/08/08/e14b882a-7b6b-11e7-9d08-b79f191668ed_story.html?utm_term=.0938becb046e) that North Korea has built a miniaturized nuclear warhead.

Buying interest may be somewhat subdued, however, as the ever-escalating war of words between President Donald Trump and North Korea continues to raise geopolitical concerns.

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday.

Japanese markets were closed for a holiday.

Traders across the globe reacted with dismay to Trump's warning Thursday that his earlier threat to unleash "fire and fury" on the reclusive nuclear-armed state may not have been "tough enough".

North Korea Crisis: EU Imposes New Sanctions Against Pyongyang
US President Donald Trump said Friday that the US military was "locked and loaded" to deal with the nuclear issue on the Korean Peninsula.


"We would now be careful with a whiff of risk aversion in the air and, by extension, also stay away from shorts in the rates market", RBC's global macro strategist Peter Schaffrik said.

The precious metal miners benefited from the flight to safety, with bullion prices hitting near two-month highs on North Korean worries. While the German DAX Index closed just below the unchanged line, the U.K.'s FTSE 100 Index and the French CAC 40 Index both tumbled by 1.1 percent.

U.S. Treasury yields fell on Wednesday, with yields on the benchmark 10-year note hitting a six-week low, as investors reached for safe-haven assets such as government debt.

After touching a more than two-month high, spot gold last added 0.1 percent to $1,287.18 an ounce. It was down 0.2% at ¥108.98, after retreating 0.7% on Thursday. Brent crude was up 30 cents at $53.00 a barrel.

The S&P/TSX composite index was down 39.02 points to 15,217.33, with most sectors finishing in the red while bullion stocks surged almost 1.9 per cent.

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.


The Korean won also continued to skid, down 0.45 percent to 1,147.2, falling below its 200-day moving average for the first time in a month. It soared over 2 percent in the previous two sessions, and is set for a weekly gain of 2.25 percent.

European stocks have fallen for a third day on Friday and look headed for their worst week since early November a year ago, as US President Donald Trump's rhetoric on North Korea over the past few days made investors risk averse. Macy's sank 10.3 percent and Kohl's lost 5.8 percent.

Priceline Group dropped 8 percent after issuing a profit forecast that was weaker than analysts were expecting.

A report released by the Labor Department showed a modest uptick in consumer prices in the USA in the month of July.

USA crude was down 0.9 percent at $48.16 per barrel, on track for a weekly loss of 2.9 percent.

Chelsea set new record in abysmal start against Burnley
Dyche will be without striker Andre Gray as the forward is set to join Watford after a deal was agreed on Wednesday. Burnley , however, have lost all three of their opening day clashes in the top flight.


Like this: