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

Trump's Tensions With North Korea Push Down Stocks

Trump's Tensions With North Korea Push Down Stocks

"European shares are trading once again lower. continuing their slide on the back of ever more increasing tensions between North Korea and the U.S.", added analyst Markus Huber at City of London Markets. "You're less than 2 per cent off the high for the S&P heading into a weekend where uncertainty with North Korea still lingers".

In response to Trump's threat, a report on state-run media in North Korea said it would "turn the U.S. mainland into the theater of a nuclear war" if it looked like America was going to attack. Tokyo's Nikkei 225 share index closed down 1.3% at its lowest since June 1 as the strong yen hit exporters, while South Korea's KOSPI index fell 1.1% to seven-week lows. Spot gold added 0.7 percent to $1,286.00 an ounce.

Investors await the headline U.S.consumer inflation data for July for more clues about future Fed decisions.

"Sound dialogue is not possible" with President Donald Trump they said.

Japan markets are closed for the Mountain Day holiday.

"The typical text book trade is that investors rush for safe havens".

The S&P 500 dropped the most since May and MSCI's gauge of stocks across the globe lost 1.1 percent in its third straight day of declines, as it pulled further back from all-time highs.

France's CAC.FCHI dropped 1.8 percent and Germany's DAX.GDAXI fell 1.5 percent.

Disappointing US inflation and jobs data have not helped the dollar. A rise in expectations for global inflation has left investors generally short of the two currencies and the turnaround in the franc this week by contrast follows its worst week since the Swiss National Bank removed a ceiling on the currency in January 2015. "Whether it is a credit crunch in China, policy error from the Fed, or fear of an over-valued US stock market, there are many reasons to maintain a balanced multi-asset portfolio that has exposure to defensive asset classes and currencies".

"Exposure to the Swiss franc and Japanese yen perhaps best comes through ownership of global stock and bond market funds, or through currency Liquidity funds".

The 30-year bond last /32 in price to yield 2.7933 percent, from 2.794 percent late on Thursday. USA -traded Nikkei futures fell 2 percent to their lowest since mid-May.

Economic data showed United States producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while separate figures showed the number of Americans filing for unemployment benefits unexpectedly rose last week.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in USA crude inventories. It was last up 1.2% at 1.1305 per euro.

In commodities trading, crude oil futures are slipping USD0.10 to USD48.49 a barrel after tumbling USD0.97 to USD48.59 a barrel on Thursday.

Like this: