What are the 'North Korea fears' doing to financial markets?

in business •  8 years ago  (edited)

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A businessman shelters from the rain beneath an umbrella as he walks in near the Bank of Central London, August 9, 2017. AFP/Tolga Akmen

NEW YORK: european and Asian fairness markets have been by and large decrease Friday on the again of simmering tensions between the united states and North Korea, however less assailable charges on Wall road helped placed a floor below the losses in Europe, sellers stated.

investors' screens were within the crimson in Asia and much of Europe as buyers fled to secure haven assets after US President Donald Trump doubled down on his North Korea rhetoric.

however in the US, Wall street shares rose as traders waded returned into the marketplace following a three-day promote-off, with high-flying technology businesses like Apple and Microsoft doing in particular properly.

the usa gains helped limit the losses in Europe.

The tentative gains "advocate that the headline surprise cost relating the united states-North Korea standoff is starting to use up, which is to say actual movement will now communicate plenty louder than words," stated Briefing.com analyst Patrick O'Hare.

"even though there is all this rhetoric, there's a fashionable feeling we aren't going to return to war," stated Karl Haeling of LBBW.

nonetheless, the geopolitical uncertainty looks set to hold, sellers said, following Trump's sparkling caution Friday that the us military is "locked and loaded" inside the occasion of a misstep via the totalitarian kingdom.

Paris and London each lost approximately one percentage, whilst Frankfurt become flat.

With jap markets closed for a public excursion, Hong Kong led the downward fee in Asia-Pacific as the cling Seng lost extra than percent.

The index changed into additionally dragged lower after Beijing ordered probes into 3 predominant chinese social networking platforms over outlawed content material.

Shanghai posted its biggest one-day drop in view that December even as Seoul stocks again ended deep in negative territory.

Gold, a conventional secure haven asset, was buying and selling at round $1,292 per ounce, up more than percent this week and close to a nine-week excessive.

The greenback pulled returned against the euro and other currencies after the patron fee Index rose a tame zero.1 percentage in July.

"The cooler CPI figures this morning observe in addition decrease than anticipated wholesale price statistics the day prior to this and collectively, have highlighted the extremely benign inflation backdrop that has decreased expectancies for Fed lending fee hikes in the months ahead," said Omer Esiner, an analyst at Commonwealth foreign exchange.

"The marketplace reaction became swift and decisive with the dollar and yields falling to lows throughout the board."

Key figures, as of 1:45 AM PST
New York

Dow: UP 0.1 percent at 21,858.32 (close)

S&P 500: UP 0.1 percent at 2,441.32 (close)

Nasdaq: UP 0.6 percent at 6,256.56 (close)

London

FTSE 100: DOWN 1.1 percent at 7,309.96 (close)

Frankfurt

DAX 30: FLAT at 12,014.06 (close)

Paris

CAC 40: DOWN 1.1 percent at 5,060.92 (close)

EURO STOXX 50: DOWN 0.8 percent at 3,406.34 (close)

Tokyo

Nikkei 225: Closed for holiday

Hong Kong

Hang Seng: DOWN 2.0 percent at 26,883.51 (close)

Shanghai

Composite: DOWN 1.6 percent at 3,208.54 (close)

Currencies


Euro/dollar: UP at $1.1824 from $1.7777

Pound/dollar: UP at $1.3015 from $1.2979

Dollar/yen: DOWN at 109.11 yen from 109.21

Energy


Oil

West Texas Intermediate: UP 23 cents at $48.82 per barrel

Brent North Sea: UP 20 cents at $52.10 per barrel

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