Economy

North Korea has markets nervous but not panicked

North Korea has markets nervous but not panicked”

Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific territory of Guam. The statement says that "only absolute force" can work on someone as "bereft of reason" as Trump.

Chief market analyst at CMC Markets Micheal Hewson agreed that investors have become used to tensions between the US and North Korea in recent years, but the "inexperience" of the US President has led market participants to adopt a "safety-first" approach.

Trump's remarks on Tuesday that North Korea would face "fire and fury like the world has never seen" weighed on Wall Street and drove up the VIX "fear gauge", or the cost of protection against a drop in the S&P 500. "You're less than 2 percent off the high for the S&P heading into a weekend where uncertainty with North Korea still lingers".

The Labor Department said consumer prices edged up 0.1% in July following no gain in June.

But are investors really nervous about a possible military conflict with Kim Jong Un? On the Nasdaq, 2,303 issues fell and 567 advanced.

The Dow slumped 204.69 points or 0.9 percent to 21,844.01, the Nasdaq plummeted 135.46 points or 2.1 percent to 6,216.87 and the S&P 500 tumbled 35.81 points or 1.5 percent to 2,438.21.

The U.S. equity market is hovering near record levels and volume has been tepid following the onset of summer.

In Europe, Britain's FTSE100 was down over one percent, Germany's DAX traded 0.5 percent lower, while the French CAC40 index was 0.62 percent in the red, as of 9:00am GMT. It is trading at its best level in two months, and is threatening to crack the $1,300 level for the first time since the day following the U.S. presidential election.

Charter Communications rose 2.9 percent on news Altice is exploring a bid for the cable giant.

In bond markets, the yield on U.S. Treasuries fell, also pressured by the lowered expectations for a Fed move.

Information technology fell 1.24 percent, hurt by a 16.6 percent plunge to 66.50 Canadian dollars (52.38 dollars) in Kinaxis Inc. stock.

Falling crude prices made oil & gas stocks a weight too, dropping 1% with Tullow Oil the biggest faller.

Benchmark U.S. 10-year notes last rose 6/32 in price to yield 2.1905 percent, from 2.211 percent late on Thursday.

For now, the dollar remained on the back foot, pulling back 0.1% to Sf0.9635 on Friday, after dropping as much as 1.2% to a two-week low overnight.

At 3:15pm BST, the Comex gold futures contract for December delivery was up 1.09% or $13.90 to $1,293.20 an ounce, as the precious metal extended overnight gains, of almost 2% stateside, with yet another rally in Asia and Europe.



Like this

loading...
loading...

Latest


14 August 2017
WannaCry 'hero' pleads not guilty to making Kronos malware
After the hearing, defence lawyer Marcia Hofmann said she is confident he will be found not guilty at a trial. He was arrested earlier this month in Las Vegas on unrelated hacking charges.

14 August 2017
Mel B's ex-nanny makes explosive claims in libel lawsuit
In her divorce testimony, Mel B accused Gilles of getting pregnant with Stephen's baby, but the child was allegedly aborted. I've never had sexual relations with Stephen without Melanie's actual or apparent consent and instructions.

14 August 2017
'Game of Thrones' Leak May Reveal Who Plays Jon Snow's Father
The revelation that Jon's parents married changes the course of the show-because in GoT lore, bastards have no inheritance claim. And that might just explain why after Rhaegar died in battle, his Kinsguard were still defending the Tower of Joy in Dorne.

14 August 2017
College Student From Houston Among Over A Dozen Injured In Charlottesville
Police said 20-year-old James Alex Fields, Jr , took dead aim at the counter-protesters with his vehicle , slamming into them. Natalie Romero, 20 (pictured), from Texas, is now recovering in a hospital in Virginia. 'A lot of back pain and neck pain.

14 August 2017
Text From The Note Arya Found In 'Game of Thrones' Episode 5
To Littlefinger , Bran probably seems like a crippled weirdo who likely spent the last few years in the woods doing mushrooms. With Jon out fighting a number of battles and Arya being driven apart from her sister, now is the flawless time to strike.

14 August 2017
Radeon RX Vega 56 And Vega 64 Review Roundup
And finally , video outputs on both cards are the same as on previous AMD reference models: three DisplayPort and one HDMI port. Above you can see a product comparison screenshot with all of Gigabyte's new RX Vega cards tabulated (click to zoom in).

14 August 2017
ZTE Blade Z Max boasts dual rear cameras for only $129
ZTE is launching yet another budget-targeted smartphone in the USA , that offers a big screen and a huge battery for a low price. Dual cameras enteer the entry-level marketJust like the Zmax Pro , the Blade X Max offers a rear-facing fingerprint scanner.

14 August 2017
Virginia governor to white supremacists: "Go home"
US President Doland Trump condemned hate and violence " on many sides " when responding to the events in Charlottesville . He said that white supremacists "picked the wrong city" to use as an example of racial tensions.

14 August 2017
Snapchat's Pokemon Filter Makes People Pikachus
Shiny Pokemon has always been a thing in Pokemon games and now Niantic will also be offering it in their Pokemon Go app . Then, they can open their mouth to hear Pikachu's iconic voice as it jumps onto the screen and strikes a pose.

14 August 2017
After 106 Years In Antarctica, Fruitcake Still Looks 'Edible'
She added that the dessert, which has a notoriously high sugar content, was "an ideal high-energy food for Antarctic conditions". As per the report, the fruitcake is one of about 1,500 artifacts discovered in a building in Cape Adare, an Antarctic peninsula.