July 23, 2018

Stocks, dollar extend slide as US, North Korea tensions intensify

11 August 2017, 10:57 | Joann Bryant

Wall Street swings lower after Trump warns North Korea

US stocks close lower, ending Dow's 10-day winning streak

US stock indexes were set to open little changed on Friday, with the S&P 500 on track to post its biggest weekly loss in nine months, as investors remained cautious on heightened tensions between the United States and North Korea.

His order, reported in state media, came hours after U.S. President Donald Trump warned Pyongyang not to "make any more threats" to the U.S., saying it would face a "fire and fury" response ( "like the world has never seen".

According to reports, North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific island territory of Guam.

The Dow Jones Industrial Average .DJI fell 36.64 points, or 0.17 percent, to end at 22,048.7, the S&P 500 .SPX lost 0.9 point, or 0.04 percent, to 2,474.02 and the Nasdaq Composite .IXIC dropped 18.13 points, or 0.28 percent, to 6,352.33.

South Korea's KOSPI fell 1.3 percent, taking its losses this week to almost 2.7 percent.

The limited fall in the price of Asian stocks suggests that stockholders are not unduly alarmed, experts said.

Asian stocks slumped on Friday as tensions ramped up between the US and North Korea, sending investors fleeing to less risky assets such as gold, the yen and USA government bonds. The 1.3 percent gain for the market's main other choice for borrowing to fund speculation, the Swiss franc against the euro, is its biggest rise in more than a year.

Money is jumping into safe-havens like Gold and the Japanese Yen, while the Korean Won has fallen to its lowest level in a month- after extending its losses to around 2% for the week.

The Swiss franc eased about 0.2 percent to 0.9658 per dollar, having surged roughly 1.1 percent on Wednesday.

Although the metal is now following a positive trajectory on the daily charts, market players might decide to remain on the sidelines ahead of the United States inflation report, released later today. Despite the losses, Noble shares rose 17.14 percent. That's the index's lowest level in two months.

Earlier, the dollar slipped as low as 108.91 yen, its weakest level since June 14, when the greenback fell as low as 108.81 yen.

Germany's DAX was also down 1.1% as bond yields fell. Disappointing company earnings also helped pull the market lower, with consumer-focused companies and technology stocks among the biggest decliners. Copper fell 2 cents to $2.93 a pound.

The European dip followed similar trading in Asia, where equities were back in the red, snuffing out a nascent recovery as tensions over North Korea lingered for a second day.

The dollar last changed hands at 108.96 yenJPY=, down 0.2 percent.

In a note sent to clients late on Thursday, the USA bank predicted the single currency would rise to $1.25 in the first quarter of next year and reach parity with sterling for the first time.

Speculative positions in US gold futures remain subdued, said UBS strategist Joni Teves. They soared over 2 percent in the previous two sessions, and are set for a weekly gain of 2.2 percent.

Other News

Trending Now

Ancient infant skull yields insights into human-ape lineage
Faces resembling gibbons evolved independently in several extinct monkeys, apes and their relatives, the researchers say. Most fossils from more than 40 known extinct ape species amount to no more than jaw fragments or a few isolated teeth.

Morocco challenges North America with 2026 World Cup bid
Africa has the second highest number of voting Federation Internationale de Football Association member countries behind Europe. Morocco has hosted two Club World Cup tournaments, in 2013 and 2014, although that is a vastly smaller and shorter tournament.

SNL stars lampoon Trump sons on Weekend Update
For being the big pop of the night, this segment wasn't the best of the show (my vote goes to the Trump brothers), but it's the freshest political story ripe for comedy that doesn't involve Trump himself.

Trump Hotel in DC Braced for a Loss, Got a Windfall
Out of the $18 million made in revenue, the hotel made a profit of almost $2 million despite budgeting for a $2.1 million loss. From January to April, the average daily room rate was $660 compared with $495 for similar hotels, according to the documents.

Nordstrom, Inc. (NYSE:JWN) Experiences Heavier than Average Trading Volume
The specialty retailer reported $0.65 EPS for the quarter, topping the consensus estimate of $0.64 by $0.01, reports. The firm had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.70 billion.

ISIS operatives allegedly used eBay to fund terror operations
The report shows growing concern among investigators about more frequent use of online platforms by terrorist organizations. The suspect is considered to be a part of a global network of IS funding, stretching from Bangladesh to the United Kingdom.

Premier League key match-ups on the opening weekend
They could have bought six or seven new players but everyone is upping their game , so I think it's a fair comment no matter what".

Despite opposition, BMC makes signing of 'Vande Mataram' compulsory in civic schools
Now, the proposal will be sent to the BMC civic chief for his opinion. Sandip Patel, BJP corporator from Goregaon, moved the proposal.

Magnitude 6.1 quake hits Batangas, felt in Manila
In February, a 6.5-magnitude quake killed eight people and left more than 250 injured outside the southern city of Surigao. People rushed out of homes, offices and commercial buildings in Manila , where the quake was felt at intensity 4.

SoundCloud shareholders vote today on its future
If it's rejected, SoundCloud CEO Alexander Ljung suggested that the company would not be able "to continue as a going concern". Axios yesterday pegged the new round at $170 million , describing today as SoundCloud's "do or die day" to seal new funding.