USA stocks tumble on North Korea worries

  • USA stocks tumble on North Korea worries

USA stocks tumble on North Korea worries

Strong corporate earnings and supporting economic data helped the market move higher.

Strong gains in NY, where the Dow saw repeated record highs up until three day ago, had kept investor optimism high when news of the conflict first broke, Currie said. Trump's remarks were provoked by Pyongyang's threats of "physical" retaliation for new sanctions imposed by the United Nations and vocally supported by the US and South Korea.

But Wall Street is wondering whether the sell-off is due to North Korea - or just a widely anticipated pullback?

Bank of Singapore investment strategist James Cheo noted that North Korea's provocations tend to have a limited impact on markets.

The group said it will pay £24 million for the stake in the firm, which will consist of 25 existing Domino's stores in the capital. The Dow Jones Industrial Average fell 0.17% and closed at 22,048.70.

In Toronto, the composite index S&P/TSX has lost 143,08 points, or 0.9 %, to close at 15 074,25 points, the decline being nearly generalized to all sectors. "The stock market looks a little vulnerable".

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.6 percent in its third session of declines, heading for a 1.5 percent drop for the week.

Traditional safe-haven currencies including the Swiss franc and Japanese yen rose against the USA dollar.

Investors' unease over escalating tensions between the US and North Korea pushed gold and bond prices higher.

"For the time being, tensions seem to be going one way, and equity markets are losing ground because of it".

The FTSE 100 firm announced in March past year that it would run its US-based asset management operation, its UK-based wealth unit, an emerging markets division and Nedbank in South Africa as separate businesses.

In currency markets, the Canadian dollar was trading at an average price of 78.71 cents United States, down 0.20 of a USA cent. The dollar pared gains slightly after Trump's North Korea comments, still supported by the job market data which underscored the view that the Federal Reserve has ammunition to continue on its tighter monetary policy path.

Kathleen Brooks, research director at City Index Direct, said: "The Swiss franc is the safe haven of choice today as risk sentiment gets hit from escalating nuclear fears between the United States and North Korea".

Japan is the world's biggest creditor nation and there is an assumption Japanese investors may repatriate their foreign holdings in times of heightened global uncertainty. They net sold 256.3 billion won Wednesday, when the Kospi saw a 1.1 percent slide.

Overall, the healthcare sector slumped 3.4 percent. Yields on core government debt fell.

The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday.

"The most visible impact of escalating verbal threats between North Korea and President Trump comes at the long end of the U.S. Treasury curve", said Jim Vogel, interest rates strategist at FTN Financial in Memphis.

Despite the ongoing turmoil, investors' focus was slowly returning to the USA economy after Chicago Federal Reserve president Charles Evans said Wednesday it would be "reasonable" to announce the beginning of a reduction of the Fed's balance sheet next month. USA bond prices also rose while gold closed at its highest for the week up 1.52% to $1281.

Gold futures for December delivery hit their highest level since June, rising $3.90 to settle at $1,294 per ounce.

On Friday basic resource stocks dropped 2.6 percent to a month low as metal prices fell. Australia's S&P/ASX 200 edged down almost 0.1 percent.