Economy

Stocks plunge amid growing North Korean-US tensions, gold continues rise

Stocks plunge amid growing North Korean-US tensions, gold continues rise”

The CBOE Volatility Index, or VIX, the most widely followed barometer of expected near-term stock market volatility, was up as much as 12.63 points, its highest in more than a month.

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States.

FTSE 100 index was trading at 7,326 levels, lower by 63.67 points, CAC 40 index was at 5,081 levels, down by 33.77 points, while the German DAX was at 11,997 levels, down by 16.82 points. Macy's sank 10.3 percent and Kohl's lost 5.8 percent.

The Nasdaq Composite .IXIC was down 68.30 points, or 1.08 percent, at 6,284.03.

Trump turns up the heat on North Korea, geopolitical tensions fuel tech tumult in USA stocks, and good news is bad news for oil.

Avis Budget Group slumped 9.9 percent after the auto rental company cut its guidance following a weak second quarter.

At 11:03 a.m. ET (1503 GMT), the Dow Jones Industrial Average .DJI was down 110.36 points, or 0.5 percent, at 21,938.34, the S&P 500 .SPX was down 19.12 points, or 0.77 percent, at 2,454.90. The Nasdaq Composite took an even bigger hit, closing down 2.1% at 6,216.87.

And on Tuesday, shares of Michael Kors jumped 20.31 percent after the retailer raised its full-year revenue forecast, while Ralph Lauren RL.N was up 9.79 percent following revenue and profit beat. The DJIA was poised for a fall of 1.1%, making for its worst week since a 1.5% drop in the one ended March 24.

All four of the big-tech FANG stocks opened sharply lower.

So far the measured decline in global stocks suggests investors buy that scenario.

Data showed USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week. It slid 80 cents, or 1.5 percent, to close at $51.90 per barrel on Thursday. Heating oil fell 1 cent to $1.63 a gallon. Copper rose 4 cents to $2.94 a pound.

U.S. trading volume has been low with summer setting in and Congress expected to be in recess until September 5. Against the euro, the dollar is valued at $1.1741 compared to yesterday's $1.1752. Wholesale inventories are expected to climb by 0.6 percent. Economists polled by MarketWatch are forecasting a 0.2% monthly rise for both measures, after flat reading the prior month.

There's a handful of high-profile economic data coming out of the Asia Pacific region to end the week, including: July house sales for New Zealand, the final reading of second-quarter growth as well as July retail sales for Singapore, and Hong Kong's second-quarter growth.

A notable decline by Disney ( DIS ) is likely to help drag the Dow lower, with the entertainment giant under pressure in pre-market trading.



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