Published: Mon, August 14, 2017
Money | By Oscar Reynolds

Seoul stocks down 1.1% on heightened tensions over North Korea

Seoul stocks down 1.1% on heightened tensions over North Korea

Elsewhere, French conglomerate Vivendi saw its stock fall 2.1 percent in the morning hours, while Italy's Mediaset dropped only 0.3 percent.

Macy's shares closed down 10.2 percent and Kohl's fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

On Aug. 9, North Korea's military said it is considering missile strikes near the United States territory of Guam, warning that it is ready to stage an all-out war if Washington launches a preventive war against it.

"Of course it's all come at a time when share markets are due for a correction, so North Korea has provided a ideal trigger", he added.

The S&P 500 volatility index, a measure of investor fear, rose for a second day. ArcelorMittal, the world's top steelmaker, dropped 4.2 percent.

Disappointing earnings also helped pull the market lower Wednesday.

J.C. Penney slumped 24.4 percent to a record low after the retailer reported a bigger-than-expected quarterly loss.

In Europe, Germany's DAX fell 1.1 percent, while France's CAC 40 slid 1.4 percent. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.3 basis points to 2.189 percent.

The oil cartel's monthly report suggested efforts to drive down the global supply glut were beginning to gain traction. It added 39 cents to $49.56 a barrel on Wednesday. Viacom slid 60 cents, or 1.9 percent, to $30.17. Silver gained 20 cents, or 1.2 percent, to $17.07 an ounce. Copper fell 2 cents to $2.93 a pound.

CURRENCY: The dollar declined to 109.79 yen from Tuesday's 110.34 yen. The euro held steady at $1.1752.

"The market is trying to interpret the CPI data as somewhat positive because it is anticipating that the Fed will be on hold not only in September but also possibly in December", said Robert Pavlik, chief market strategist at Boston Private Wealth. The index fell as much as half a percent, with utilities leading decliners.

The biggest risers on the FTSE 100 Index were Coca-Cola HBC up 219p to 2,592p, WorldPay up 19p to 407.5p, Randgold Resources up 95p to 7,475p, WPP up 19p to 1,581p.

Other markets: Asian markets had another tough day (http://www.marketwatch.com/story/asian-markets-extend-selloff-in-face-of-north-korean-crisis-2017-08-10), while the Hong Kong Hang Seng Index and the South Korea Kospi dropped 2.5% and 3.2%, respectively, for the week. Core prices had also been expected to climb by 0.2 percent.

The Labor Department said its producer price index for final demand edged down by 0.1% in July after inching up by 0.1% in June.

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