Global stocks slide as US-North Korea nuclear tensions rise

Global stocks slide as US-North Korea nuclear tensions rise

Global stocks slide as US-North Korea nuclear tensions rise

The pan-European FTSEurofirst 300 index .FTEU3 lost 1.19 percent.

The pan-European FTSEurofirst 300 index .FTEU3 lost 1.01 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.26 percent for a weekly loss of 1.6 percent, the largest since the week to November 4. Some 40 of the stocks in the index had fallen, with seven unchanged and just three up. In the latest jab at the rogue state, President Trump said the leader of North Korea will "truly regret" any threat toward US -controlled Guam, after earlier stating that the American military is " locked and loaded".

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.93 per cent to close at 21,844, the S&P 500 fell 1.45 per cent to close at 2,438 and the NASDAQ lost 2.13 per cent to close at 6,217. Wall Street's fear gauge-the CBOE Volatility Index or the VIX-jumped 44 percent to 16.04, the highest it has been since Trump was elected on November 8 past year. Stocks in Taiwan, Singapore and other Southeast Asian countries were also lower. "Geopolitical risks don't really influence Korean markets", he said.

'Of course, it's all come at a time when share markets are due for a correction, so North Korea has provided a flawless trigger'.

The dollar last changed hands at 108.96 yen, down 0.2 percent.

"We should also consider the upcoming election, which is now looking to be a very tight race".

"If the market truly believed the North Korea reaction was imminent, I think it would be down a lot more than it is", said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

Spot gold rose 0.3 percent to $1,264.50 per ounce at 0324 GMT, while USA gold futures for December delivery rose 0.6 percent to $1,270.40 per ounce.

The euro edged down 0.1 percent to $1.1735.

US crude rose 0.41 percent to $48.79 per barrel and Brent was last at $52.01, up 0.21 percent. Ten-year US yields dropped 4.3 basis points to 2.24 per cent and German equivalents fell 3 bps to 0.43 per cent, a six-week low. The company has been fairly consistent in increasing production and said recently that it expected to achieve the top end of its production guidance for 2017.

Disney dropped 3.9 percent after reporting a weak quarter and saying it would pull its movies from Netflix and start its own video streaming services.

Until this week, the equity market had managed to shake off negative news, including previous saber-rattling over North Korea and failures in Washington to pass high-profile bills, such as repealing and replacing Obamacare.

Benchmark 10-year notes US10YT=RR last rose 5/32 in price to yield 2.2255 percent, from 2.242 percent late on Wednesday. Brent crude, used to price global oils, declined 23 cents to $51.67 per barrel in London. Wholesale gasoline dropped 2 cents to $1.60 a gallon, while heating oil shed 2 cents to $1.63 a gallon.

The Labor Department also said unit labor costs rose by 0.6 percent in the second quarter following an upwardly revised 5.4 percent spike in the first quarter.

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