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.



Like this

Latest


13 August 2017
Tigers win on Upton home run
After Martinez walked to load the bases, McCann jumped on a first-pitch, off-speed offering and pounded it over the fence in left. Stanton went 3 for 4 with two runs scored and is hitting.382 (13 for 34) with eight home runs and 15 RBI in his last nine games.

13 August 2017
Should Donald Trump be banned from Twitter?
Popular Video This young teenage singer was shocked when Keith Urban invited her on stage at his concert. He echoed his tough stance against North Korea in a series of tweets August 9, according to The Hill .

13 August 2017
Moto X4 images along with it's specs leaked online
For starters, the Moto X4 is supposed to be made of glass and metal, which is a first for a Motorola device in the recent years. The Moto X4 will also be IP68 dust and water resistant, offering additional protection for those with butter fingers.

13 August 2017
Usain Bolt lost his final career race, but he's still the GOAT
Olympic great Usain Bolt reacts in despair after injury cost him a relay medal at the world athletics championships in London. After winning the 4x100m title in Brazil, Bolt confirmed that the 2017 world championships would be his final event.

13 August 2017
Dow slips 100 points as tensions with N.Korea escalate
Dillard's slumped 15.5 percent after the chain booked a loss for the second quarter as increased inventory led to big discounts. Australia's S&P/ASX 200 edged down almost 0.1 per cent to 5,760.90, while South Korea's Kospi fell 0.5 per cent to 2,357.84.

13 August 2017
Dollar slumps, Tokyo tanks as North Korea tensions spike
This will see Vantiv shareholders owning the majority of the new group with 57% and Worldpay shareholders with the remaining 43%. Benchmark US 10-year notes last rose 6/32 in price to yield 2.1905 per cent, from 2.211 per cent late on Thursday.

13 August 2017
Burnley shock champions Chelsea
Chelsea kick off their 2017/18 Premier League campaign tomorrow afternoon with a home fixture against Burnley at Stamford Bridge . To be fair to the bookies, there is a trend developing, with Leicester's Claudio Ranieri suffering the same fate last season.

13 August 2017
Arsenal kicks-off English Premier League on a high
We want him to be a nuisance. "We were a threat and played football and contributed to a thoroughly entertaining game". He has a big weight in the squad and it was a relief for me that he chose to stay.

13 August 2017
Arsenal Edge Leicester In Seven-Goal Thriller
The visitors took the lead again 10 minutes into the second stanza as Vardy grabbed his brace with a cute header from close range. Speaking after the game, Wenger said: "Going forward and character wise we have been great".

13 August 2017
FTSE ends down as shares hit by US-North Korea tensions
In the eurozone, the Paris CAC 40 dropped nearly 0.7 per cent to 5,081.92 points compared with the closing level on Thursday. Chipmaker Infineon dropped 1.1% in Frankfurt and luxury fashion retailer Kering slid 1.7% in Paris.



Recommended