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

Wall St set to open lower as tensions with N.Korea mount

Wall St set to open lower as tensions with N.Korea mount

Eight of the 11 major S&P sectors were lower, with the consumer discretionary index's 0.59 percent fall leading the decliners. They outweighed gains in health care stocks and elsewhere.

"The overnight Korean news has prompted some unwinding of the cheapening trades on the franc that has been going on for some time and though positioning is not stretched by any means, the franc's strength may have room to run", said Timothy Graf, head of macro strategy at State Street Global Markets in London. The S&P fell as much as 0.52 percent at its session low. The Dow Jones industrial average slid 36.64 points, or 0.2 percent, to 22,048.70.

Earlier this week, President Donald Trump said that North Korea would face "fire and fury" if it continued to threaten the States, however North Korea has dismissed these warnings by the us incumbent as a "load of nonsense".

Despite the past week's decline, the major indexes are in positive territory so far this year, led by the Nasdaq, which is up 16.2 percent.

Markets Right Now: Stocks drop, led by technology companies
The latest USA economic data cemented expectations that inflation will remain subdued amid a robust labour market. Nvidia Corp.(NVDA) shares fell 5.3%, even after the chip maker posted upbeat earnings late Thursday.


Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control.

The remarks followed a new report asserting that USA intelligence has assessed that Pyongyang has successfully produced a nuclear warhead that can fit inside its missiles. The Russell 2000 index of smaller-company stocks gave up 13.20 points, or 0.9 percent, to 1,396.95, the lowest level in two months. US -traded Nikkei futures fell 2 percent to their lowest since mid-May. Its shares slid $9.77, or 5.3 percent, to $174.02. The stock was the biggest gainer in the S&P 500, adding $8.02 to $45.25. On the Nasdaq, 1,846 issues fell and 953 advanced favoring decliners.

Gold royalty and streaming company Franco-Nevada Corp. jumped 3.57, or 3.9 percent, to 95.65 Canadian dollars (75.33 dollars) after reporting quarterly results late on Tuesday. The Japanese yen strengthened 0.08 percent versus the greenback at 110.00 per dollar.

Benchmark US 10-year notes were last up rose 11/32 in price to yield 2.2423 per cent, from 2.282 per cent late on Tuesday. Yields on British and European bonds, which move inversely to the price, were lower on Wednesday morning.

Wall Street falls on North Korea concerns
Earlier on Thursday, North Korea revealed a plan to launch ballistic missiles toward a major US military hub in the Pacific. The Labor Department said its consumer price index inched up by 0.1 percent in July after coming in unchanged in June.


Elsewhere in commodities, the September crude contract was up 39 cents to US$49.56 per barrel, September natural gas advanced six cents at US$2.88 per mmBTU and September copper declined two cents at US$2.93 a pound.

Spot gold added 0.7 percent to $1,286.00 an ounce.

In commodities trading, United States crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut. United States gold futures gained 1.50 per cent to US$1,281.50 an ounce.

In other energy futures trading, wholesale gasoline rose 1 cent to $1.61 a gallon, while heating oil was little changed at $1.63 a gallon.

Natural disaster of magnitude 6.5 hits Indonesia's Sumatra; tremors felt in Singapore
According to Mochammad Riyadi, an official at Indonesia's meteorology and geophysics agency told. Bengkulu resident Neng Hasnah said that the tremors were felt very strongly for a few seconds.


German bond yields fell, gold and the Japanese yen surged and the leveraged bets on higher-yielding currencies such as the Australian dollar took a beating. The euro held steady at $1.1752.

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