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

North Korea has markets nervous but not panicked

North Korea has markets nervous but not panicked

The announcement Thursday warned that the North is preparing a plan to fire four of its Hwasong-12 missiles over Japan and into waters around the tiny island, which hosts 7,000 USA military personnel on two main bases and has a population of 160,000.

The Dow closed down 205 points Thursday, in its biggest decline since May 17, after U.S. President Donald Trump rejected criticism that his threats to release "fire and fury" had been too inflammatory. Investors had their eye on company earnings and the latest developments in the ongoing tensions between North Korea and the United States. Pyongyang said it was examining plans for attacking Guam, a US territory in the Pacific that has a USA military base.

"Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

"In all likelihood, the North Korea problem will persist for years to come, with the U.S. and, increasingly, China attempting to contain and restrain Kim Jong-un". It would be ideal for the precious metals if the dollar were to weaken again now, and that could happen courtesy if U.S. economic data is weaker.

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Spot gold rose 0.3 percent to $1,264.50 per ounce at 0324 GMT, while USA gold futures for December delivery rose 0.6 percent to $1,270.40 per ounce.

Materials, home to gold producers and other resource-based companies, was the only gainer among the index's 10 main sectors and was up 0.6 percent.

Adding to the modest losses posted in the two previous sessions, stocks moved sharply lower over the course of the trading day on Thursday. The yield on three-year Treasurys fell 0.9 basis point to 1.824 percent and the return on benchmark five-year government bonds shed 1.4 basis points to 2.024 percent.

The Dow Jones Industrial Average fell 70.4 points, or 0.32 per cent, to 22,014.94, the S&P 500 lost 5.51 points, or 0.22 per cent, to 2,469.41 and the Nasdaq Composite dropped 31.19 points, or 0.49 per cent, to 6,339.27. "Risk aversion is still very much a concern for markets".

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The MSCI Asia Pacific Index slid 0.4 percent to 160.57 as of 3:41 p.m.in Hong Kong as more than two stocks declined for each that advanced.

Japanese financial markets will be closed Friday for a national holiday. Germany's DAX Index fell 0.6 per cent, while the UK's FTSE 100 Index retreated 1.2 per cent, and France's CAC 40 Index slid 1.4 per cent.

USA crude oil futures settled almost 2 per cent lower at $48.59 a barrel, as Russian Federation considered a future output resumption and the Organization of the Petroleum Exporting Countries boosted its July production numbers.

Appetite for haven assets continued to support gold, which rose 0.2% Friday to $1,293 a troy ounce.

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The Federal Reserve's hint about unwinding balance sheets, the possibility of the European Central Bank tapering stimulus and the looming debate about the US debt ceiling in the fall challenge the market's recent performance, Mr. Baele said. On the Nasdaq, 1,462 issues rose and 1,227 fell.

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