Economy

Japanese Yen Benefits as Geopolitical Tensions Rise

Japanese Yen Benefits as Geopolitical Tensions Rise”

The Office for National Statistics reported that overall industrial production rose 0.5% in June on the preceding month, stronger than the 0.1% that the agency had calculated in for its preliminary estimate for the second quarter, after May's production was revised to flat. The euro fell to $1.1735 from $1.1757.

"The war of words taking place between the U.S. and North Korea at the moment, which includes very real threats of action, is taking its toll on investor sentiment". Instead, he said his statement "maybe wasn't tough enough". Retailer Office Depot shares fell almost 26% after it posted a quarterly profit that missed expectations.

USA gold futures for December delivery was mostly unchanged at $1,290.50 per ounce.

The Federal Reserve is also scheduled to release the minutes of its latest monetary policy meeting, which may shed some light on the outlook for the interest rates. Asian shares meanwhile have tracked the United States lower this morning. The dollar also slipped against the yen.

The dollar weakened against the yen, which is often sought in times of geopolitical tension.

The reclusive state raised the stakes further on Thursday with a detailed plan to send a salvo of missiles towards the USA territory of Guam.

President Donald Trump said Friday that the U.S. military was "locked and loaded", while Pyongyang accused him of driving the Korean peninsula to the brink of nuclear war.

Trading will also be moderated by a lack of legislative news from Washington as the U.S. Congress is in recess until Sept 5. The Dow slid 33.08 points, or 0.2 percent, to 22,085.34. MSCI's main index of Asia-Pacific shares, excluding Japan, was last down 0.5 percent.

"Korean tensions are pretty much the only horse in town". The benchmark Kospi tumbled 39.76 points or 1.7% to 2,319.71, its lowest level since May 24th. "Although it is considered highly unlikely that this tension will escalate into a nuclear war, the market still needs to see how President Trump will eventually deal with his advocating "fire and fury" against North Korea's threat", said Margaret Yang Yan, market analyst at CMC Markets Singapore.

Bond prices were little changed.

Hong Kong was down 1.1%. Mainland China share prices fell on worries regulators will continue to clamp down on debt.

The Shanghai composite index was down 0.8 per cent at the close of the ASX.

U.S stocks are set to open deep in the red (-0.3%).

South Koreans watch a television displaying news broadcasts reporting on North Korea at a station in Seoul today. Both the core and headline rates are expected to have risen by 0.2 percent during July.

The pound was up 0.3% against the euro at 1.1091 and down nearly 0.1% on the dollar at 1.2994.

The escalation of the rhetoric between the USA and North Korea is keeping market participants on their toes and with no fresh economic reports the price action is dictated by the headlines. Washington delivered the ultimatum after North Korea's threat of a pre-emptive military strike on the US island territory of Guam in the western Pacific.

On Thursday, North Korea's state media kept up its anti-U.S. rhetoric, saying the nation will develop a plan by mid-August to launch intermediate-range missiles at Guam.

All this on what was looking like a fairly quiet 10th anniversary of the star of the global credit crisis.

On the other hand, gold stocks showed a strong move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 1.7 percent.



Like this

Latest


13 August 2017
JD(U) suspends Ali Anwar Ansari from parliamentary party
He added that this was not personal fight against Nitish Kumar but a fight of principles and to save democracy and brotherhood. The Congress had called a joint opposition meeting in order to discuss unity and plan future strategy to take on NDA.

13 August 2017
Matic is a 'gross loss' for us, admits Chelsea boss Conte
Matic's departure will force Conte to accelerate Bakayoko's progress into the starting XI when he returns to fitness. He was a brilliant midfield player, one of the best in the world, but he kept chasing the ball and vacating areas.

13 August 2017
Paloma Partners Management Co Cuts Position in Hospitality Properties Trust (NASDAQ:HPT)
Hospitality Properties Trust makes up 2.1% of Capital Management Corp VA's portfolio, making the stock its 22nd largest position. TRADEMARK VIOLATION WARNING: This article was originally published by Stock Observer and is the property of of Stock Observer.

13 August 2017
Micromax Canvas Infinity Price In India Specifications Features Review Comparison
The Micromax Infinity series phones are expected to feature a design similar to the Samsung flagship, the Samsung Galaxy S8 . Following the footsteps of Samsung, Micromax is all set to launch its very own set of smartphones with the infinity display.

12 August 2017
AMC Entertainment Holdings, Inc. (NYSE:AMC) Stock Recovered From Losses After-Hours
LMR Partners LLP bought a new position in shares of AMC Entertainment Holdings during the first quarter valued at $2,192,000. As of quarter end Parametric Portfolio Associates LLC had acquired a total of 151,672 shares growing its stake by 154.3%.

12 August 2017
BidaskClub Lowers Anheuser-Busch Inbev SA (BUD) to Sell
Roundview Capital Llc decreased its stake in Anheuser ( BUD ) by 40.27% based on its latest 2016Q4 regulatory filing with the SEC. Michigan-based Ls Invest Advisors Limited Liability Corporation has invested 0% in Cal-Maine Foods Inc (NASDAQ:CALM).

12 August 2017
Luxoft Holding, Inc. (NYSE:LXFT) Reaches New 52-Week Low at $46.50
Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable. The firm owned 6,133 shares of the software maker's stock after buying an additional 3,147 shares during the period.

12 August 2017
Extra Space Storage Inc (EXR) Investment Increased by Norges Bank
Kentucky Retirement Systems acquired a new position in shares of Extra Space Storage during the fourth quarter valued at $705,000. The stock rose 0.12% or $0.01 reaching $8.21 per share. 284,942 were reported by Pacific Ridge Ptnrs Limited Liability Company.

12 August 2017
FY2017 EPS Estimates for Cinemark Holdings, Inc. Increased by Wedbush (CNK)
The value of the investment in (CNK) increased from $15,144,000 to $16,568,000 a change of 9.4% since the last quarter. A high ROE indicates successfully earning more assets and value for its shareholders off its reinvested earnings.

12 August 2017
Leucadia National Corporation (NYSE:LUK) Issues Quarterly Earnings Results
Country Club Trust Company n.a. boosted its stake in shares of Leucadia National Corporation by 6.1% in the first quarter. Usca Ria Limited Co reported 28,970 shares. 48,141 are held by Capstone Inv Limited Liability. (NYSE:LUK).



Recommended