Economy

US stocks slip amid heightened US-North Korea tensions

US stocks slip amid heightened US-North Korea tensions”

South Korea's Kospi fell 0.5 percent.

The pan-European FTSEurofirst 300 index lost 1.01 percent and MSCI's gauge of stocks across the globe shed 0.12 percent. The Russell 2000 index gave up 24.40 points, or 1.7 percent, to 1,372.54.

But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar. Despite the recent depreciation, the Kiwi Dollar is ahead by more than 5% since the beginning of the year, and moving off a multi-year high at $0.7557.

"We're not very oversold yet so the market still has more downside left to it".

Wall Street stocks fell Tuesday amid rising tensions between the United States and North Korea, bringing the Dow's streak of nine straight records to an end.

"This is a normal fluctuation, it just seems so odd because we have hardly had any volatility", said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis.

Stock futures were trading lower on Thursday, Aug. 10, as the threat of conflict with North Korea continued to percolate.

Despite the drop, analysts said the market seemed to be a bit sceptical that the North Korea situation would grow into a major crisis, noting that the losses were still not that deep.

Investors are losing enthusiasm for Canada's banking stocks as a slowdown in the country's housing market dents banks' growth prospects, with insurance companies seen as a better bet to benefit from higher interest rates. "Hard to assess political risk is now intruding on this scenario".

Analysts warned the softening dollar could test June's low of 108.82 yen and even the 2017 trough of 108.13 yen.

Energy stocks retreated 0.5 percent, despite higher oil prices. Following Trump's remarks, North Korea on Wednesday said it was "carefully examining" plans for a missile attack on the U.S. Pacific territory of Guam, which is home to a large U.S. military base.

"Although we certainly can get a five to seven percent correction, we don't think it's the start of a significant bear market". They were at 2.201 percent on Friday. The dollar pared gains slightly after Trump's North Korea comments, still supported by the job market data which underscored the view that the Federal Reserve has ammunition to continue on its tighter monetary policy path. This morning gold had reached $1,286.33 while gold for delivery in December rose 0.8% to $1,290.10. It soared over 2 percent in the previous two sessions, and is set for a weekly gain of 2.25 percent.

Elsewhere in commodities, the September crude contract advanced 20 cents to $49.76 per barrel and the September natural gas contract was up seven cents to $2.95 per mmBTU. They plunged 2 percent on Thursday on fears of slowing demand and lingering concerns over a global oversupply.



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