European markets end lower amid geopolitical tensions
13 August, 2017, 16:24 | Author: Brenda Erickson
The U.S. dollar inched up against the Japanese yen and the Swiss Franc on Friday, erasing earlier losses, after Russian Foreign Minster Sergei Lavrov said there was a Russian-Chinese plan to defuse tensions between the United States and North Korea.
The modest rebound came at the end of a turbulent week on Wall Street as escalating tensions between the US and North Korea rattled global markets.
The CBOE Volatility Index - a measure of investors' expectations for swings in the S&P 500 over the next 30 days - surged Thursday to its highest level since U.S. Election Day.
"If earnings can stay strong and interest rates remain low investors can look beyond North Korea and continue to rally equities", Phipps said. "That did temporarily shake investors' complacency, but we think markets are ready to move higher in the back half of the year, and earnings and economic data are going to drive that".
Sterling was last trading at $1.3013, up 0.30 percent on the day.
For the week, the Dow is down 1.1%, its biggest one-week drop since November.
The Dow industrials rose 14.31 points, or less than 0.1%, to 21858.32 on Friday.
The pan-European FTSEurofirst 300 index lost 1.06 percent and MSCI's gauge of stocks across the globe shed 0.17 percent.
The recovery fit a recent pattern of investors using dips to put more money in stocks.
The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts. With the sell-off on the day, the Nasdaq and the S&P 500 fell to their lowest closing levels in a month.
Tensions between the US and North Korea continued to simmer early Friday.
Trump's words were in response to North Korea threatening to attack USA territory Guam.
DJ's Lawsuit Against Taylor Swift Dismissed
She also said that she was doing this as an example for young victims of sexual assault around the world. Mueller, 55, had sued the pop star for $ 3m, saying that the 27-year-old cost him his job.
The reclusive state raised the stakes further with a detailed plan to send a salvo of missiles towards the USA territory of Guam.
Still, there were fewer signs of anxiousness in the markets Friday. It's still the highest it's been since May.
Investors also drew some encouragement from government data showing US inflation at the consumer level only inched higher in July.
A small rise in a measure of USA consumer prices pointed to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year, which would be favorable to equity investors.
Apart from geopolitical worries, some technical analysts like Tom McClellan, editor of the McClellan Market Report, blamed seasonality for this week's retreat given August's record as a weak month for stocks.
The hope that the Fed will have to slow its rate-hike path appeared to stop, at least for now, the near $1-trillion loss in world stocks valuations this week triggered by the war of words between Pyongyang and Washington. But some economists say the Fed may stand pat for the rest of 2017 unless inflation accelerates in coming months.
"The data confirms the Fed will have a wait-and-see attitude", said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.
Seagate Technology gained 2.3 percent after investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company. The stock lost 78 cents to $3.93. For the week, the benchmark slipped 2.6%.
USA crude fell 0.41 percent to $48.39 per barrel and Brent was last at $51.68, down 0.42 percent on the day.
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. Silver gained 1 cent to $17.07 an ounce.
But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar.
The dollar index .dxy fell 0.39 percent, with the euro up 0.48 percent to $1.1827. Britain's FTSE 100 was down 1.1 percent. Australia's S&P/ASX 200 dropped 1.2 percent. The Japanese markets were closed for a holiday.
In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day. Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control.
Mannarino became the fourth established ATP player this week to fall at the hands of the 18-year-old left-handed Canadian. He saved the first with an ace but Ferrer made no mistake with his second set point, converting to take the opener 6-4.
North Korea responded by saying it was considering a plan to attack Guam and dismissed Trump's warnings as a "load of nonsense". On Tuesday, the commander in chief said the rogue nation "will be met with fire and fury like the world has never seen ".
On Thursday, MACC officers seized documents related to the Kampung Sungai Lembu factory from the Seberang Prai Municipal Council. Earlier, Dev told reporters that the magistrate in Penang did not hear their submissions before setting the remand order.
Besides that, today the area of interest will be how India's own chinaman Kuldeep Yadav bowls on a pitch offering slow turn. For Sri Lanka , Pushpakumara scalped 3 wickets , while Sandakan took 2 wickets and Fernando one.
Retailers slid after department stores Macy's and Kohl's both said same-store sales continued to decline in the second quarter. Investors are increasingly nervous: The VIX volatility index, a closely-watched "fear gauge", is up 70% since Tuesday.
In response, Japan began on Saturday to deploy its missile defense system Patriot, after threats from Pyongyang. North Korea has lashed back at the US following President Donald Trump's latest warnings .
The Premier League season started in incredible fashion, with two goals in a matter of minutes after the opening whistle. The 2017-18 Premiere League season started off with an absolute thriller between Arsenal and Leicester City on Friday.
With Giroud replacing Holding, Wenger switched the formation from a 3-4-2-1 to a 4-4-2 with Giroud and Lacazette up front. And so they did, within two minutes. "Overall we looked better defensively at the end of the [2016-2017] season".
Stocks Regain Ground But Still Close Lower For The Week
Investors bought bonds after the Labor Department said the consumer-price index increased 0.1% in July from the previous month. An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 percent, led by Toronto-based Yamana Gold Inc.
Mattis: War with North Korea would be 'catastrophic'
Ambassador Nikki Haley "has [gained] diplomatic traction" and "is gaining diplomatic results", according to the BBC. The North was responding to Trump's threat in a statement from its military carried by state-run news agency KCNA.
US stocks slip amid heightened US-North Korea tensions
While the UK's FTSE 100 Index slid by 0.6%, the German DAX Index slumped by 1.1% and the French CAC 40 Index tumbled by 1.4%. Crude futures meanwhile extended losses on fears of slowing demand and lingering concerns over global oversupply.
4 natural disaster hits Indonesia's Sumatra: USGS
Geological Survey said the quake Sunday morning had a magnitude of 6.4 and occurred at a depth of 35 kilometers (21 miles). Channel NewsAsia received calls from residents in Singapore living in Toa Payoh and Farrer Road saying they felt tremors.
Markets Right Now: Stocks drift lower on Wall Street
The Nasdaq finished the day at 6,216.87, a slide of 135.46, while the S&P 500 lost almost 1.5 percent, ending the day at 2,438.21. Investors bought safe-haven assets such as gold, helping the precious metal touch a two-month high, and the Japanese Yen rose.