Dow slips 100 points as tensions with N.Korea escalate

Traders working on the floor of the New York Stock Exchange

Another source of support to bullion was data showing US producer prices unexpectedly fell in July, pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

In the first four days of the week, the Standard & Poor's 500 index swung from marking its latest record high to posting its biggest single-day drop in almost three months. Indeed, US equities sold off at the open and added to those losses this afternoon following President Trump's latest warning to North Korea.

The Toronto Stock Exchange's S&P/TSX composite index unofficially closed down 143.08 points, or 0.94 percent, at 15,074.25.

The pan-European FTSEurofirst 300 index .fteu3 lost 1.01 percent and MSCI's gauge of stocks across the globe .miwd00000pus shed 0.12 percent. It has been more than a year since the last 5% downdraft in stocks and more than 76 weeks since the stock market suffered a 10% loss. MSCI's broadest index of Asia-Pacific shares outside Japan .miapj0000pus closed 1.37 percent lower.

"Pretty remarkable, perhaps even extraordinary, considering", said Tim Ash, strategist at fund manager BlueBay.

The yen on Friday added to a strong weekly rally against the dollar of close to 1.5 percent, hitting its highest versus the greenback in nearly four months, at 108.73 yen.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors will repatriate funds should a crisis materialise. The S&P 500 gained 6 points, or 0.2%, to 2,444, supported by gains in consumer-discretionary, technology and health-care sectors. With the upward move, the Nasdaq and the S&P 500 rebounded after ending Thursday's trading at their lowest closing levels in a month.

CURRENCIES: The euro was down 0.1 percent at $1.175 while the dollar fell 0.6 percent to 109.68 yen.

Subdued U.S. inflation has stirred doubts about the chances of another Fed interest rate hike this year, which have weighed on the dollar. "If you look at the gold price after the CPI (inflation) data, it tells you that the Fed is not going to be in any rush to increase the interest rate this year", said Naeem Aslam, chief market analyst at Think Markets.

The local index is still up 13.2 percent for the year.

"There are four more (inflation) prints between now and the December FOMC meeting and we expect the Fed to remain data-dependent, if a touch more cautious", said TD Securities in a research note.

USA crude rose 0.43 percent to $48.80 per barrel and Brent was last at $52.01, up 0.21 percent on the day.

After touching a more than two-month high, spot gold last added 0.1 percent to $1,287.18 an ounce.

Crude oil prices fell on Thursday, on concerns of lingering global oversupply as Russian Federation considered a future output resumption and OPEC boosted its July production numbers.

US stocks have risen week after week this year - with the S&P up more than 9 percent - in extremely low volatility, as strong corporate earnings and an improving global economy offset disappointment that President Donald Trump's promises to lower corporate taxes and implement a massive infrastructure spending have so far failed to see the light of day.

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