Investors rush to gold following rising North Korea tensions

13 August, 2017, 11:09 | Author: Terri Saunders
  • Investors rush to gold following rising North Korea tensions

Stock markets took the brunt of risk-averse trading on Wednesday after an overnight escalation of tensions between the U.S. and North Korea forced investors into haven assets such as gold, Treasuries and the Swiss franc.

Tokyo's benchmark Nikkei 225 index was flat, slipping 0.01 percent, or 1.99 points, to sit at 19,736.72 by the break while the Topix index of all first-section issues fell 0.13 percent, or 2.04 points, to 1,615.86.

Crude oil futures are slipping USD0.10 to USD48.49 a barrel after tumbling USD0.97 to USD48.59 a barrel on Thursday.

Rising geopolitical tensions were heightened further when U.S. President Donald Trump warned Pyongyang it should be "very, very nervous" if it even thinks about attacking the United States or its allies, after Pyongyang said it was making plans to fire missiles over Japan to land near the U.S. Pacific territory of Guam. Japan was closed on a public holiday.

The latest COT positioning data will be watched closely in late USA trading on Friday, although overall risk conditions are likely to remain the dominant short-term influence on gold prices.

The sell off in stocks and flight to safety gathered pace in early European trade as the already cool relationship between the U.S. and North Korea turned icy following hard-nosed rhetoric from both nations.

The Japanese currency last traded at 109.07 yen to the dollar, compared to levels around the 110 handle seen earlier in the week.

Former Second Round Pick Trent Murphy Suffers Torn ACL, Out For Season
Get daily prep sports headlines from the Gwinnett Daily Post staff delivered to your email. He played two seasons with UAB, recording 40 receptions for 648 yards and five touchdowns.


The FTSE 100 Index closed down 79.98 points to 7,309.96, with President Donald Trump tweeting that the United States military is "locked and loaded" as he warned North Korea over its continuing threats.

Australian shares fell to near three-week lows in a broad-based selloff. Hong Kong's Hang Seng Index dropped 1.69%, while mainland markets saw the Shanghai Composite dip 1.04%.

The market's main backstop in times of strain, gold, hit a two-month high of $1,282 an ounce amid the nervousness. They are expected to cut North Korea's export revenues by one third.

The pan-European STOXX 600 was down 0.7% at closing, France's CAC 40 fell 1.4% after a vehicle hit a group of soldiers in Paris in what is thought to have been a deliberate act, and a fall in bond yields saw Germany's DAX down 1.1%. July's 0.1 percent increase in consumer prices suggests that the Federal Reserve may be less likely to raise interest rates next month.

Oil also regained momentum as data pointed to declining US inventories.

On the other hand, shares of Nordstrom (JWN) may see early strength after the department store operator reported second quarter results that beat estimates on both the top and bottom lines.

Insurers and banks, which invest in higher-yielding products such as foreign bonds, underperformed after U.S. Treasury yields fell on Wednesday, with the yields on the benchmark 10-year note hitting a six-week low.

Recommended:

  • HBO offers $250000 as 'bounty payment' to hackers

    HBO offers $250000 as 'bounty payment' to hackers

    HBO offered to pay $250,000 to hackers who were threatening to leak episodes of its massively popular drama Game of Thrones. The anonymous hackers were known to have made a ransom demand , but details of how this was handled were not made public.
    Trump better president than Obama

    Trump better president than Obama

    Ben Rhodes, a former deputy national security adviser in the Obama administration, tweeted back at Trump on Wednesday morning. It is not the first time Trump has attempted to portray himself as being more popular than Obama.

    Political tensions continue to weigh on world stocks

    Investors instead turned to safe-haven assets such as gold, pushing it to a two-month high, and the Japanese yen rose. Declining issues outnumbered advancing ones on the NYSE 6-to-1; on Nasdaq, a 3.60-to-1 ratio favored decliners.
  • Heading to OR  for the solar eclipse? Better plan ahead

    Heading to OR for the solar eclipse? Better plan ahead

    He explains that, whenever the Earth, moon and sun align to form a solar eclipse , the event is visible somewhere on Earth. Make sure you don't directly look at the sun during the eclipse unless you have special eye protection.
    Return to the country of a pastor freed by North Korea

    Return to the country of a pastor freed by North Korea

    Lim's case at all levels, and we will continue to support him and his family now that he has returned", the statement said. He was sentenced to hard labor for life in December 2015 on charges of attempting to overthrow the Pyongyang regime.
    United States  stock futures, dollar slip on rising Korean tensions

    United States stock futures, dollar slip on rising Korean tensions

    Baker Avenue's Lip said the USA market was higher due to "bargain hunters", but "there's more room for the market to come down". South Korea 's fell 1.7 percent to its lowest since May 24, but its losses for the week are a relatively modest 3.2 percent.
  • US President Donald Trump picks fresh fight with Venezuela

    US President Donald Trump picks fresh fight with Venezuela

    The Trump administration has characterized Maduro as a dictator and announced sanctions against government officials. " Trump tells reporters at his New Jersey golf course Friday that he's "not going to rule out" a military option".
    Tesla reveals Model 3 reservation number, Model Y details

    Tesla reveals Model 3 reservation number, Model Y details

    When it was rolled out Musk said: "All Tesla vehicles exiting the factory have hardware necessary for Level 5 autonomy". Until now, Tesla's Fremont, Calif., plant has been turning out fewer than 100,000 sedans and crossovers a year.
    Vehicle  rams into crowd during white nationalist rally in Charlottesville, Virginia

    Vehicle rams into crowd during white nationalist rally in Charlottesville, Virginia

    His chief strategist, Steve Bannon, once declared that his former news site, Breitbart, was "the platform for the alt-right". Trump, as a candidate, frequently came under scrutiny for being slow to offer his condemnation of white supremacists.
  • Studs and duds from New York Jets' preseason opener against Titans

    Studs and duds from New York Jets' preseason opener against Titans

    He found Robby Anderson on a 53-yard deep pass where Anderson beat Logan Ryan, the Titans' big free-agent signing at cornerback. He completed 17-of-24 passes for 119 yards and looked confident and comfortable as he played the majority of the game.
    Mourinho says Manchester United still in the market for a winger

    Mourinho says Manchester United still in the market for a winger

    There's still nearly three weeks left before the window closes- a lot can happen between now and then. The top seven, we are all in Europe. "The trend has always to come from the team".

    Chelsea heading for Groundhog Day after Burnley defeat

    Everton - Ronald Koeman has done a fantastic job and the signing of Wayne Rooney is magical for the player and the club. Next up for Chelsea is a tricky trip to Wembley to face Tottenham Hotspur next weekend.


Popular

Bryce Harper injures left knee, leaves game
Elsewhere • Dodgers pitcher Clayton Kershaw (lower back soreness) is scheduled to throw a second bullpen session Sunday. The Rockies inked first baseman Ryan Howard to a minor league contract on Saturday, per a team announcement .

Landslide in Himachal, at least seven dead
Commenting on the incident, Mandi deputy commissioner Sandeep Kadam said the possibility of more deaths could not be ruled out. Himachal Transport minister GS Bali said the toll could climb to 50 in the incident which took place last night.

Jason Day blows his PGA Championship
The ball bounced high off a rock and settled into what he called "the worst lie I've seen all week" in the deep Bermuda grass. While Kisner was the story early in the day, the weather took the stage as the afternoon wave of players took to the course .

Tesla Wants To Test Autonomous Semi Without A Human Driver
Tesla is raising $1.5 billion as it ramps up production of the Model 3 sedan, its first mass market electric auto . The company had revenue of $2.79 billion for the quarter, compared to the consensus estimate of $2.50 billion.

National Football League could still investigate Ezekiel Elliott bar incident
Elliott will be appealing the suspension and will have the full support of Cowboys owner Jerry Jones throughout the process. He can play in preseason games and practice until September 2, regardless of the outcome of the appeal.

Kim Jong Un doesn't need to strike Guam - he's already won
If it is designated as such, missile interception and protection of USA military vessels will be allowed. Japan moved missile interceptors into position after the Guam threat, the Nikkei newspaper reported .

West Brom 1-0 Bournemouth: Baggies edge Cherries
Rodriguez then curled an effort inches wide of the far post with Begovic beaten as the Baggies continued to push for the opener. It comes after the Welshman guided the Baggies to a 10th-placed finish in the Premier League last season.

Mercosur Condemns Trump's Comments On Venezuela
While Trump raised the specter of military intervention, his top national security aides have downplayed that possibility. As to US military action against Venezuela , the Pentagon said it had not received any such orders from the White House.

Driver of vehicle that plowed into crowd protesting white nationalists identified
Charlottesville Police Chief Al Thomas said the suspect was taken into custody not far from the crash site. Police said Lieutenant H Jay Cullen of Midlothian and Trooper-Pilot Burke M.M.

Jake Humphrey talks transfers, the upcoming season and Lampard
"I think it is the objective of every one of the top teams and every one of the top team managers", Mourinho said. I really hope Spurs win it, but they haven't recruited, and i think that's a worry for Pochettino".