Stocks lower, safe-haven assets higher amid US-North Korea tensions

Pauline Gross
August 11, 2017

'If anything, maybe that statement wasn't tough enough, ' he told reporters yesterday, saying that North Korea 'better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world'.

London's benchmark FTSE 100 index shed 0.9 per cent to 7,323.45 points.

'The enormous surge in the Vix tells us exactly what traders are thinking, ' said David Madden, market analyst at CMC Markets UK.

Shane Oliver, head of investment strategy at AMP Capital in Sydney, said: "What has changed this time is that the scary threats and war of words between the U.S. and North Korea have intensified to the point that markets can't ignore it". Global equity markets have been severely shaken by the standoff between the two countries'.

Many Asian currencies struggled, with the Korean won heading for its sharpest fall in almost eight weeks.

The yen's gains helped push the Nikkei 225 in Tokyo down 1.3% to close at 19,738.1 points while the broader MSCI Asia ex-Japan index was marked 0.57% by 09:00 London time.

DSP among two traffic police officials gunned down in Karachi
Additional IG Karachi Ghulam Qadir Thebo while talking to reporters said bullet shells of a 9mm pistol were found from the scene. They were immediately taken to the Abbasi Shaheed Hospital where they were declared dead by the doctors upon their arrival.

Magnitude 6.2 quake hits Philippine island of Luzon, jolts buildings
Manila: A strong but deep quake struck the northern Philippines early Friday afternoon and was felt in Manila. The quake that struck at 1:28 p.m. has its epicenter in Lian, Batangas.

House 'blown apart' by explosion in Sunderland
The Tyne and Wear Fire & Rescue Service has five appliances, 26 firefighters and several specialist units in attendance. Andy wrote: "Massive bang followed by the building shaking at work". "All emergency services are on the scene".

Regional stocks remained lower throughout the session after North Korean leader Kim Jong Un made an explicit threat to strike a USA military base in Guam (http://www.marketwatch.com/story/north-korea-threatens-missile-strike-on-us-base-on-guam-2017-08-08).

The Dow Jones Industrial Average is priced for a 35-point pullback from its Tuesday close of 20,085.34 points while the Nasdaq is set up for a 30-point, or 0.44%, decline at the opening bell.

United Kingdom stocks closed in the red Wednesday, as assets viewed as risky were swept aside amid escalating tensions between the USA and North Korea.

Back on the Stoxx 600, shares of gold miners Fresnillo PLC (FRES.LN) and Polymetal International PLC (POLY.LN) leapt 4.9% and 3.3%. The price of gold rose 1.2 percent and the Swiss franc had its best day in almost three years.

The jitters came as Pyongyang said it was considering plans to attack the US Pacific territory of Guam - while Donald Trump threatened to react with "fire and fury".

Other reports by GizPress

Discuss This Article

FOLLOW OUR NEWSPAPER