Economy

Equities fall on rising tension between US & North Korea

Equities fall on rising tension between US & North Korea

The sabre-rattling - sparked when President Donald Trump stunned the world with an apocalyptic warning to unleash "fire and fury" on North Korea - continued Thursday as Pyongyang mocked the USA leader as "bereft of reason".

The Dow industrials and S&P 500 rose 0.2% in recent trading, though the S&P 500 is set to end the week down 1.4%, its biggest loss since March.

In bond markets, the yield on US Treasuries fell, also pressured by the lowered expectations for a Fed move.

Market analysts expect that the pullback in stocks due to the increasingly aggressive tone in exchanges between Washington and Pyongyang will continue, although investors hope that the selling will not escalate to a correction - a decline of 10 percent or more. The UK's FTSE 100 Index slid 0.6 percent, while Germany's DAX Index retreated 1.1 percent and France's CAC 40 Index gave up 1.4 percent.

A Labour Department report showed its producer price index posted a surprise drop in July, down 0.1 percent for the largest slide in nearly a year.

The pan-European FTSEurofirst 300 index lost 1.01 percent and MSCI's gauge of stocks across the globe shed 0.26 percent for a weekly loss of 1.6 percent, the largest since the week to November 4.

Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the US Pacific territory of Guam.

Trump suggested in remarks on Thursday that his comments threatening North Korea with "fire and fury" may not have been tough enough. It's also called the "fear index". Its weekly gain of 2.6 percent is the largest since June 2016.

More news: Trisha Paytas lashes out at housemates after quitting CBB
More news: Putney Bridge jogger search resumes after police clear suspect
More news: Jesus welcomes Aguero competition on trophy charge for Manchester City

This week, the S&P 500 started on a stronger note by rising to new record high price levels.

Nevsun Resources Ltd offset some of the material group's gains, plunging 18.4 percent to C$2.685 after the company reported disappointing quarterly results.

More than 430 stocks from all US 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.

Michael Kors climbed 21.5 percent after the luxury handbag and apparel designer and retailer's latest quarterly results beat analysts' forecasts as sales improved.

On the London stock market, mining shares saw the biggest falls as many metal prices were hit by the geopolitical concerns.

US crude oil futures settled almost 2 percent lower at $48.59 a barrel, as Russian Federation considered a future output resumption and the Organization of the Petroleum Exporting Countries boosted its July production numbers.

Emerging market stocks rose 0.29 percent. On the Nasdaq, 2,082 issues fell and 669 advanced. The September copper contract was down two cents to $2.91 a pound.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in USA crude inventories, leaving prices volatile.


  • Rooney sets Premier League record after trading Man Utd for Everton

    Rooney sets Premier League record after trading Man Utd for Everton

    Stephen Ireland is "a matter of weeks" away from a return while Ibrahim Afellay is still sidelined, having undergone knee surgery. Romelu Lukaku can open his Manchester United account by scoring first against West Ham tomorrow at odds of 5-2.
    Nord Corea, Pentagono:

    Nord Corea, Pentagono: "Stop minacce"

    Poche ore dopo le nuove bordate di minacce del presidente Usa Donald Trump contro la Corea del Nord , l'agenzia ufficiale di Pyongyang , Kcna , risponde a tono alzando ulteriormente la tensione.

    Arsenal beat Leicester City 4-3 in Premier League opener

    "Maybe not (enough changes) to win the league, which ultimately is what they want to do", Neville said on Sky Sports. You can not keep the strikers happy when they don't play.
  • Trump Speaks to Guam Governor About... Tourism?

    Trump Speaks to Guam Governor About... Tourism?

    And if anything happens to Guam, there's going to be big, big trouble in North Korea". Trump had threatened to rain "fire and fury" on North Korea for any provocation.
    Lionel Messi €300M Transfer Discussed by Jurgen Klopp After Neymar's PSG Move

    Lionel Messi €300M Transfer Discussed by Jurgen Klopp After Neymar's PSG Move

    Until now it was simply seen as impossible", Klopp told DAZN , as quoted on FourFourTwo . 'In a period of just a month that suddenly sounds possible too.
    Gorka: Tillerson Comments Taken Out of Context

    Gorka: Tillerson Comments Taken Out of Context

    Asked what would have been tougher than " fire and fury ", Trump replied only, "You'll see". Trump administration officials haven't been on the same page about North Korea .
  • Zlatan Ibrahimovic: Jose Mourinho confirms Manchester United talks over January return

    Zlatan Ibrahimovic: Jose Mourinho confirms Manchester United talks over January return

    We got a central midfielder, a striker, obviously the 25% would be for a player from the sides, but we have players. He thinks he can do more. "We have the confidence levels of a team who won a European competition".
    Will New Sanctions Restrain Kim Jong Un? Maybe Not

    Will New Sanctions Restrain Kim Jong Un? Maybe Not

    Security Council unanimously approved new sanctions on North Korea Saturday, including banning exports worth over $1 billion. On Monday, North Korea fired four ballistic missiles in an apparent protest against ongoing U.S.
    Crystal Palace v Huddersfield Town

    Crystal Palace v Huddersfield Town

    Huddersfield Town won't just be carrying the hopes of the county when the club returns to football's big time today. Huddersfield begin their first top-flight campaign for 45 years on Saturday when they travel to Crystal Palace .
  • NTSB: 1 person dead, 2 hurt in CT  plane crash

    NTSB: 1 person dead, 2 hurt in CT plane crash

    The Cessna 172 is a single-engine four-seater that is one of the most popular aircraft in general aviation for flight instruction. The FAA will investigate and the National Transportation Safety Board will determine the probable cause of the crash.
    Wall Street stock rally could be derailed by war of words

    Wall Street stock rally could be derailed by war of words

    Avis Budget Group slumped 9.9 percent after the auto rental company cut its guidance following a weak second quarter. Meantime, on the commodity front oil prices fell 2 per cent while gold has maintained its two month high.
    Businesses scramble to order more eclipse glasses

    Businesses scramble to order more eclipse glasses

    For DSLR cameras, the best way to determine the correct exposure is to test settings on the uneclipsed Sun beforehand. In Canada, where we'll only see a partial solar eclipse for the entire duration, this won't matter quite as much.