Tensions over North Korea weigh on stocks but boost gold

Tensions over North Korea weigh on stocks but boost gold

"Investors tend to be more cautious ahead of economic data, especially when the prices are high".

The selling in United States markets started on August 8 after President Trump warned North Korea that threats will be "met with fire and fury". Pyongyang said it was examining plans for attacking Guam, a USA territory in the Pacific with a military base. The move added to escalating U.S.

Volatility jumped and the pan-European STOXX 600 fell 1.1 percent, taking weekly losses to 2.8 percent, its worst since early November 2016. "The strong global economy driven by strong earnings is really helping to minimize some of these concerns".

However, market watchers said equity markets remained focused on the deepening geopolitical crisis, as angry threats from Washington and Pyongyang stoke fears of a catastrophic miscalculation with global consequences. Eastern time. The Dow Jones industrial average slid 84 points, or 0.4 percent, to 22,000. The Nasdaq composite lost 0.3 percent to 6,352.33.

"For quite some time the market hasn't really reacted to things on the Korean Peninsula because we know from the past it is largely North Korean sabre-rattling, and it may yet be".

U.S. President Donald Trump said on Thursday afternoon that his earlier warnings to North Korea may not have been tough enough.

"We're not very oversold yet so the market still has more downside left to it". South Korea's won currency dropped 0.9% against the dollar. It was down 0.1 percent at 109.07 yen JPY= , after retreating 0.8 percent on Thursday.

The slump comes after more than £27 billion was wiped off the value of blue-chip stocks on Thursday, sending the FTSE 100 to its biggest daily fall since April 18 this year.

Selling was broad. Declining issues outnumbered advancing ones on the NYSE 6-to-1; on Nasdaq, a 3.60-to-1 ratio favoured decliners. Yields on core government debt fell. The Treasury yield us 10-year fell to 2,201 % vs. 2,248 % Wednesday night and one of the warrants to 30 years 2,778 %, compared with 2,824 %.

U.S. producer prices unexpectedly recorded their biggest drop in almost a year, and the number of Americans filing for unemployment benefits unexpectedly rose last week.

Despite the ongoing turmoil, investors' focus was slowly returning to the United States economy after Chicago Federal Reserve president Charles Evans said Wednesday it would be "reasonable" to announce the beginning of a reduction of the Fed's balance sheet next month.

Some of the top performing gold stocks also rose on the back of the heightened US and North Korean tensions. It hit a 15-month low of 92.548 on August 2.

The Canadian dollar edged down 0.20 cents to 78.73 US cents, while oil prices gained 39 cents to 49.56 USA dollars a barrel and gold prices increased 19.10 to 1,281.70 USA dollars an ounce.

Stocks finished off their lows, but still stayed negative Wednesday (http://www.marketwatch.com/story/us-stock-futures-pull-back-as-north-korea-threatens-guam-2017-08-09), as investors assessed the U.S.



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