Dow slips 100 points as tensions with N.Korea escalate

Preventing nuclear war is bigger than any political shenanigans

Preventing nuclear war is bigger than any political shenanigans

President Donald Trump warned North Korea again on Thursday not to strike Guam or US allies, saying his earlier threat to unleash "fire and fury" on Pyongyang if it launched an attack may not have been tough enough.

South Korea's KOSPI fell 1.7 per cent on Friday to its lowest since May 24, but its losses for the week were a relatively modest 3.2 per cent.

Equity markets had traded with a soft tone in Europe and there was a sharp increase in selling pressure in NY with the S&P 500 index declining by close to 1.0%.

Insurers and banks, which invest in higher-yielding products such as foreign bonds, were the two worst performers on the board after US Treasury yields fell on Wednesday, with the yields on the benchmark 10-year note hitting a six-week low.

The hope that the Fed will have to slow its rate increases appeared to stop, at least for now, the near US$1 trillion loss in world stocks valuations this week triggered by the war of words between Pyongyang and Washington.

Emerging market stocks lost 1.27 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.47 per cent lower. Trading was thinner than usual, with Japanese markets closed for a public holiday.

The dollar was steady against a basket of six major currencies at 93.412 after falling 0.2 percent on Thursday, with disappointing US inflation and jobs data adding to the greenback's woes.

Although Japan could be in the front line of any clash with North Korea, the yen is benefitting because Japan is the world's biggest creditor nation and Japanese investors tend to repatriate funds in times of stress, attracting other flows.

Many markets have climbed to record or multi-year highs, leaving them vulnerable to a sell-off.

Earlier in the session, it marked its highest since June 8 at $1,288.92 an ounce.

Computer hardware stocks rebounded following recent weakness, with the NYSE Arca Computer Hardware Index climbing by 1.4 percent.

The dollar was further weighed down on Friday by the soft USA inflation data.

"Both (PPI measures) were well below consensus and give us no hope that consumer price inflation is going to materially beat expectations", said Chris Weston, chief market strategist at IG Markets.

The Labor Department said its producer price index for final demand edged down by 0.1 percent in July after inching up by 0.1 percent in June.

Significant strength was also visible among software stocks, as reflected by the 1.2 percent gain posted by the Dow Jones Software Index.

Low U.S. Treasury yields are also weighing on the dollar.

Greg McKenna, an analyst at AxiTrader, said the data could bolster the Federal Reserve's plan to start winding in its multi-trillion-dollar bond holdings balance sheet, expected to be announced next month. The September copper contract was down two cents to US$2.91 a pound.

Spot gold inched down 0.1 percent to $1,284.64 per ounce as of 0616 GMT, but was set for a weekly gain of over 2 percent.

If the North Korean regime "does anything" to the United States or a USA ally "things will happen to them like they never thought possible", he told reporters on Thursday, according to Bloomberg. Brent crude was up 80 cents at $53.50 a barrel and USA crude was up 60 cents and back up to $50.

Recommended News

  • Alvaro Morata needs more time - Antonio Conte

    Alvaro Morata needs more time - Antonio Conte

    Morata's position in the starting line-up is even more crucial in the continued absence of out-of-favour compatriot Diego Costa . Conte kept his counsel on Chelsea's transfer business, with the summer window open until August 31.

    Levels in Review For HSBC MSCI CHINA UCITS ETF (HMCD.L)

    The Average Directional Index or ADX is technical analysis indicator used to describe if a market is trending or not trending. Several other hedge funds and other institutional investors also recently bought and sold shares of the stock.
    IPhone 8 Home &

    IPhone 8 Home & "Function Area" Revealed

    It's frequently expected that Apple will use black bezels across the board to blend them into the phone's 5.8-inch OLED display. Now UI designers went to work and made mockups to visualize how exactly the top of the iPhone 8 screen looks like.
  • Bills trade Watkins to Rams; get Matthews from Eagles

    Bills trade Watkins to Rams; get Matthews from Eagles

    Watkins is heading into the final year of his rookie contract and is cheap for the Rams, at a salary of just $690,000 this year. Watkins, 24, was the fourth overall pick in the 2014 draft after playing in college at Clemson.
    Middlesbrough sign Chelsea midfielder Lewis Baker on season-long loan

    Middlesbrough sign Chelsea midfielder Lewis Baker on season-long loan

    The 26-year-old joined Middlesbrough for £12m from the Italian side but now is on the verge of returning to Atalanta . De Roon made 33 appearances last season in the Premier League , scoring four goals as they were relegated.
    Developing: Exeter Hospital Partially Evacuated

    Developing: Exeter Hospital Partially Evacuated

    The hospital told CBS News in a statement that a few patients reported dizziness Friday morning from "an unknown cause". The extent of the chemical release is not yet known.
  • Newborn baby found covered in ants in a bush in Houston, Texas

    Newborn baby found covered in ants in a bush in Houston, Texas

    Authorities said they found evidence that the baby was born inside the apartment and then taken outside and placed on the ground. Neighbors questioned why the mother had left the baby outside the apartments when there is a hospital less than a block away.

    Liverpool Release Coutinho Statement Amid Barca Links

    In a statement on Friday, the club's owners said its "definitive stance" was that "no offers will be considered". Philippe Coutinho has rocked Liverpool by handing in a transfer request on the eve of the new season.
    Bills trade Watkins to Rams for CB Gaines & 2nd round pick

    Bills trade Watkins to Rams for CB Gaines & 2nd round pick

    Watkins, the No. 4 overall pick in the 2014 NFL Draft, spent four seasons with the Bills but spent much of last season injured. As a result of these transactions, the Bills now own two selections in the first, second and third round of the 2018 Draft.
  • Oxygen supply disruption: 30 children die in India hospital

    Oxygen supply disruption: 30 children die in India hospital

    The negligence has raised a question over the prevailing infrastructure in the state-run hospitals in Uttar Pradesh . The 23 deaths comprised of 14 in the neonatal ward, three in the AES ward and six in the general ward.
    Positive Sales Performance for Nordstrom in 2nd Quarter

    Positive Sales Performance for Nordstrom in 2nd Quarter

    UBS AG restated a "buy" rating and set a $51.00 target price on shares of Nordstrom in a research report on Monday, May 15th. Finally, State of Alaska Department of Revenue boosted its position in shares of Nordstrom by 1.5% in the second quarter.
    Transgender Troop Ban Is a 'Great Favor' for the Military, Trump Says

    Transgender Troop Ban Is a 'Great Favor' for the Military, Trump Says

    The Obama administration ended the ban on transgender service members in 2016, and many have come out and serve openly. Trump had tweeted the ban on July 26 sending military leaders and LGBTQ advocates in a tizzy.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.