Global markets pressured by North Korea fears

Global markets pressured by North Korea fears

Global markets pressured by North Korea fears

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose $3.40, or 0.26%, to $1,293.37 a troy ounce. The yen also advanced further after a brief pull-back overnight. Germany's DAX Index fell 0.6%, the UK's FTSE 100 Index retreated 1.2% and France's CAC 40 Index slid 1.4%.

Disappointing economic data releases weighed on both sides of the Atlantic today with a negative goods trade balance for the United Kingdom (-0.1% versus expectations of 1.4%), higher unemployment claims from the U.S. (244,000) and also a negative month-on-month PPI figure for the USA (-0.1%).

The euro was struggling on Thursday as it came under pressure from the latest bout of risk-off, with traders seeking to unwind some of their positions following the strong rally seen over the past month.

Sterling was last trading at $1.3009, up 0.27 percent on the day. The UK trading session took USD/CHF lower to hit a day low of 0.9630 towards the closing bell, but closed up slightly on the day by 0.03%. Following the speech by Reserve Bank of Australia Governor Philip Lowe the aussie tumbled to $0.7838, its lowest since mid-July, but managed to recover to 0.7858 ahead of European trading.

Losses at the Snapchat parent ballooned to $443 million in the second quarter, a almost fourfold increase from the same period previous year. RBA Governor Lowe opened his speech by saying the bank prefers to be prudent and keep the cash rate at 1.5% as it supports jobs growth and a return to average inflation.

Platinum climbed 1.1% to $987 per ounce after touching $991.50, its highest since March 6.

Still, the main indexes have not yet recouped losses sustained over a three-day stretch of red ink earlier this week. Eastern Time, with producer prices for July due simultaneously. Core PPI was also down 0.1%, missing the 0.2% estimate. Economists are forecasting a pickup in the monthly core CPI index with a gain of 0.2% in July, up from 0.1% the prior month.

Weekly Unemployment Claims rose unexpectedly by 224K. Expectations were for 240k and compares with a revised 241k in the prior week. The euro touched a one-month low of 128.19 yen earlier on Friday.

The Fed expects "very weak" US inflation to rebound thanks to a slide in the dollar and to a labour market that keeps getting hotter, one of the Fed's most influential officials said in comments that reinforce its gradual policy-tightening plan.

Other markets: Oil turned lower after the International Energy Agency said oil supply rose for a third month as compliance with an OPEC output deal faltered but prices have rebounded (http://www.marketwatch.com/story/oil-prices-head-lower-as-global-tensions-continue-unabated-2017-08-11) to edge up.

U.S. crude rose 0.41 percent to $48.79 per barrel and Brent was last at $52.01, up 0.21 percent.

The index was showing signs of Greed just two days ago while the Dow was in the midst of a winning streak that included nine straight record highs. Dollar/loonie briefly fell sharply to 1.2668 after the USA data before quickly bouncing back to trade around 1.2715.

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