Dow loses more than 100 points amid North Korea tensions

Ivan Schwartz
August 12, 2017

The Nasdaq finished the day at 6,216.87, a slide of 135.46, while the S&P 500 lost almost 1.5 percent, ending the day at 2,438.21. They are looking for confirmation the Fed is sticking with plans for a possible December interest rate hike.

The S&P 500 index was on track for its first daily drop of more than 1 percent in nearly three months on Thursday as investors grew cautious over escalating tensions between the United States and North Korea.

Asian markets continued to fall on Thursday (http://www.marketwatch.com/story/asian-markets-continue-to-fall-after-wednesdays-selloff-2017-08-09), with losses of over 1% for the Hong Kong Hang Seng Index.

More than 430 stocks from all USA exchanges hit their lowest levels in 52 weeks or more on Thursday, the most for any session since mid-November right after Trump was elected.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors there will repatriate funds in a crisis. Economists had expected another 0.1% uptick.

Gold prices have maintained a firm tone with a push to 2-month highs on Thursday as underlying demand for defensive assets remained an important feature.

The latest U.S. economic data cemented expectations that inflation will remain subdued amid a robust labour market.

Trump's statements on North Korea reminiscent of Bush's preventive war doctrine
Fred Bell, the vice chairman of the Palm Springs Air Museum, has been analyzing US and North Korea relations for decades. A threat his military calls "a load of nonsense", warning that only "absolute force" can work on him.

Will the Great American Eclipse make animals act strangely? Science says yes
Eclipses happens sometimes when moon orbits earth and moves between the sun and earth, casting a shadow onto our planet. The only time it's ever safe to look at the sun is during a total eclipse , when the sun is completely behind the moon.

Korean tensions keep yen near eight-week highs
USA crude fell 0.41 percent to $48.39 per barrel and Brent was last at $51.68, down 0.42 percent on the day. July consumer price data for hints on the Fed's policy outlook and near-term moves in the dollar.

"If the data continues to come in on the softer side, the market might start to price the Fed staying on hold this year", said Sireen Harajli, FX strategist at Mizuho in NY.

The dollar index, which tracks the greenback against six rival currencies, edged higher after Dudley's comments and was up 0.03% to 93.577.

Against the pound, the euro managed to gain margially, rising 0.06% to 0.9047.

"It reinforces market concerns that inflation is perhaps just not picking up in the way the Fed had been expecting", said Osborne.

Gold enjoyed another strong session as traders sought out safe havens, with the price lifting 0.1% to 1,287.8 United States dollars an ounce.

Benchmark 10-year notes US10YT=RR last rose 5/32 in price to yield 2.2255 percent, from 2.242 percent late on Wednesday. "I think before the end of the year the market goes to new highs and (Treasury) yields go higher".

Crude oil prices fell on Thursday, on concerns of lingering global oversupply as Russian Federation considered a future output resumption and OPEC boosted its July production numbers. On the New York Mercantile Exchange light, sweet crude futures for delivery in September rose $0.39, or 0.8%, to $49.56 a barrel. It is now on track for its biggest weekly drop since the week before the November 8 USA presidential election.

Other reports by GizPress

Discuss This Article

FOLLOW OUR NEWSPAPER