Published: Mon, August 14, 2017
Markets | By Noel Gibbs

Dow loses more than 100 points amid North Korea tensions

Dow loses more than 100 points amid North Korea tensions

Wall Street put a floor under global equities on Friday after a weak inflation reading brought investors back into US stocks even as tensions between the United States and North Korea continued to escalate, though that tension still drove safe-haven buying of gold and the yen.

The broad-based Stoxx Europe 600 stock index dropped 0.5 percent in early trading, with key indices, such as Britain's FTSE 100, Germany's DAX and France's CAC all down 0.5 percent or more.

"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY.

US stocks opened lower on Wednesday as investors flocked to safe-haven assets amid escalating tensions between North Korea and the United States.

The pan-European FTSEurofirst 300 index lost 1.01 per cent and MSCI's gauge of stocks across the globe shed 0.26 per cent for a weekly loss of 1.6 per cent, the largest since the week to November 4. Netflix also fell, giving up $2.58, or 1.4 percent, to $175.78.

But although USA equities on Wednesday managed to close only slightly down even after Trump's warning that "fire and fury" would rain on North Korea, on Thursday the chickens came home to roost on Wall Street.

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This is probably the easiest one I've had to prep for because I know the golf course so well and I've been up here a lot. That could leave the final major of the year up for grabs over the final 36 holes on the weekend, but not for everybody.


The moves come after President Trump ratcheted up the war of words with Kim Jong Un's regime, saying it will "face fire and fury like the world has never seen" if it keeps threatening the United States.

Barrick Gold Corporation (ABX - Free Report) stock popped 1.42%, while Newmont Mining Corporation (NEM - Free Report) gained 1.01%.

Other precious metals like silver XAG= and platinum XPT= were also buoyant.

The Labor Department said its consumer price index inched up by 0.1% in July after coming in unchanged in June.

"Today's inflation data put the Fed on pause and really diminishes the fact that there's still some noise going around with the North Korea-U.S. situation", said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

South Korea's fell 1.7 percent to its lowest since May 24, but its losses for the week are a relatively modest 3.2 percent.

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As for sales, the clubs of the English Premier League released players in the amount of 570 million pounds. "It won't be easy. It's a great challenge for us to try and retain the title, but we are working hard", he added.


The 30-year bond last /32 in price to yield 2.7933 percent, from 2.794 percent late on Thursday.

Sydney was a rare bright spot in Asia-Pacific with stocks closing 0.4 per cent up as Australia's biggest bank posted record annual profits.

Meanwhile, the dollar USDJPY, -0.31% fetched ¥109.69, compared with ¥110.31 late Tuesday. The u.s. central bank, one of whose tasks is to contain the price rise, does not therefore appear to be obliged to accelerate the pace of the slow tightening of monetary that it has committed.

The euro was 0.1 percent higher at $1.1824 EUR=.

A consortium led by Yanlord Land, Perennial Real Estate and its two sponsors Kuok Khoon Hong and Wilmar International and an investor bought a 33.5 per cent stake in UE at $2.60 a share, triggering a mandatory conditional offer at the same price. Japan was closed on a public holiday.

OIL: Benchmark U.S. crude added 27 cents to $49.44 a barrel on the New York Mercantile Exchange.

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The meeting had been called to discuss Opposition unity and to chalk out a strategy against the Narendra Modi government. But in June, Mr Kumar whacked it out of shape by supporting the BJP's Ram Nath Kovind's ascension to President of India.


The yield on the 10-year Treasury bond fell to 2.2% and is approaching its lowest level of the year.

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