Economy

Escalating US-North Korea tensions hit markets

Escalating US-North Korea tensions hit markets

USA stocks closed lower for the third day in a row Thursday, led by declines in technology companies and banks, two of the highest-performing sectors over the past year.

Shares of Snap were off about 13 percent premarket following the social media company's earnings that came below estimates and a slew of price target cuts.

Wall Street saw a stock sell-off on Thursday as rising tensions between the USA and North Korea filled investors with worry.

Bond prices were little changed.

The Standard & Poor's 500 index slipped 0.90 points, or 0.04 percent, to 2,474.02. The Nasdaq composite fell 45 points, or 0.7%, to 6,324.

KOREA JITTERS: With President Donald Trump warning North Korea of "fire and fury", investors have become concerned that the war of words between Washington and Pyongyang could escalate.

Nations race to prevent backsliding on sweeping North Korea sanctions
He said the program was a rational "strategic option" in case of attack by the US , the Washington Post reported. Triggering an economic meltdown in North Korea would inevitably produce a spillover effect in China, he said.

Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the U.S. is prepared to take military action against North Korea.

The remarks followed a new report asserting that US intelligence has assessed that Pyongyang has successfully produced a nuclear warhead that can fit inside its missiles.

TECH SLIDE: Losses among technology stocks led the market slide. Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively.

Disappointing earnings also helped pull the market lower Wednesday. Its rouble-based peer MICEX shed 1.2 percent to 1,937 points, its lowest since August 1.

Retail results are also on investors' mind as the second-quarter earning season winds down. Macy's was down 4.4 percent after the company said its sales continued to decline in the second quarter. Germany's DAX Index fell 0.6%, the UK's FTSE 100 Index retreated 1.2% and France's CAC 40 Index slid 1.4%. It rose $15.70, or 1.2 percent, to $1,277.80 an ounce. Kohl's also declined, sliding $3.62, or 8.6 percent, to $38.31.

Helping offset the geopolitical tensions was weaker-than-expected consumer price data for July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.

Drama At The Emirates As Arsenal Beat Leicester In Seven-Goal Thriller
Arsene Wenger raised eyebrows last week when he said it was an "ideal situation" having players in their final year at the club. Neville said on Sky Sports . "We kept the faith and kept believing in our game to push hard".

Brent crude futures lost 0.8 percent to $51.5 per barrel on persistent oversupply worries despite a bigger-than-expected drawdown in US crude inventories. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London. Brent crude, used to price worldwide oils, added 21 cents to $52.91.

The dollar fell to 109.85 yen from 110.48 yen late Tuesday.

Gold fell $2.10 to $1,262.60 an ounce.

The rhetoric, which began late Tuesday and continued into Friday, cracked the calm that has enveloped the market for months and interrupted stocks' march higher. Tokyo's Nikkei 225 tumbled 1.3 percent, while Seoul's Kospi fell 1.1 percent.

Significant strength was also visible among software stocks, as reflected by the 1.2% gain posted by the Dow Jones Software Index.

Game of Thrones DoP says next episode better than dragon battle
For those wanting to watch this week's episode on the HBO GO app, it can be seen at the same time as it will air on TV. Watching Jaime from afar, Tyrian mutters under his breath, "Flee you idiot" when he sees Jaime charging at Daenerys .


  • Wall Street lower as investors weigh rising North Korea tensions

    Wall Street lower as investors weigh rising North Korea tensions

    On the week, the Dow Jones lost 0.9 %; the S&P 500 has dropped 1.4 per cent, its biggest weekly decline in more than four months. Gold, meanwhile, a traditional safe haven for investors, gained $26.50 since Monday, closing Thursday at $1291.20 per ounce.
    Facts About North Korean Dictator Kim Jong Un

    Facts About North Korean Dictator Kim Jong Un

    The regime's recent military tests reveal that the entire continental USA with the exception of Florida may be in range of North Korean missiles.
    US stocks slip amid heightened US-North Korea tensions

    US stocks slip amid heightened US-North Korea tensions

    South Korea's KOSPI fell 1.7 percent to its lowest since May 24, but its losses for the week are a relatively modest 3.2 percent. While the French CAC 40 Index fell by 0.6%, the German DAX Index slumped by 1.1% and the UK's FTSE 100 Index plunged by 1.4%.
  • At least 30 killed in floods and landslides in Nepal

    At least 30 killed in floods and landslides in Nepal

    Landslides and flooding are common in the Himalayan region during the monsoon season, which runs from June through September. The water level in various rivers increasing and some are flowing above the danger mark.
    Gold steady near 2-month highs on N. Korea tensions

    Gold steady near 2-month highs on N. Korea tensions

    As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 2.212%. An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 percent, led by Toronto-based Yamana Gold Inc.
    Iranian parliament approves anti-US bill

    Iranian parliament approves anti-US bill

    The additional United States sanctions put in place last month directly target the missile programme and the IRGC. Tehran says its missile program does not breach a United Nations resolution which endorsed the nuclear deal.
  • Brexit deal not 'back door' to staying in EU: Ministers

    Brexit deal not 'back door' to staying in EU: Ministers

    The two sides will be looking for a solution to those issues at the next round of talks due at the end of this month. The first will be a proposal for new customs arrangements.
    Stock Futures Lower Again as North Korea Tensions Intensify

    Stock Futures Lower Again as North Korea Tensions Intensify

    North Korea had responded to Trump's previous promise to unleash "fire and fury" with a threat to land a missile near the U.S. The pan-European FTSEurofirst 300 index lost 1.06 percent and MSCI's gauge of stocks across the globe shed 0.17 percent.
    NZX50 drops 1% as North Korean tension escalates

    NZX50 drops 1% as North Korean tension escalates

    However, the market changed its direction after President Trump warned North Korea that threats will be "met with fire and fury ". Avis Budget Group Inc. slumped 9.9 percent after the vehicle rental company cut its guidance following a weak second quarter.
  • Charlottesville: Chopper crash near white supremacist rally claims 2 lives

    Charlottesville: Chopper crash near white supremacist rally claims 2 lives

    Video on social media showed a vehicle at high speed rear-ended another auto , then backed up and rammed into pedestrians. MORE: Why is Charlottesville ground zero for white supremacists? A group of protesters also gathered in San Francisco.
    Wenger eyes Sanchez deal as PSG focus on Mbappe

    Wenger eyes Sanchez deal as PSG focus on Mbappe

    I think, if you read the French papers, Kylian Mbappé is how they will look to finish their transfer market. Wenger was coy, though, when he was asked if any bids had been tabled for Sanchez.
    Conte regrets Matic sale to Manchester United

    Conte regrets Matic sale to Manchester United

    The midfielder rejoined Jose Mourinho for £40million, opting to leave last season's Premier League champions for Old Trafford. "Matic knows very well what I think about him", Conte told Sky Sports News during the Premier League launch.