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