Global stocks fall on rising unease over North Korea

In a note to investors, Paul Christopher, head global market strategist, and Tracie McMillion, head of global asset allocation, suggest, "the threat of a nuclear weapon is certainly more serious than previous threats, but that threat also may increase the probability of a diplomatic solution".

The yen is often sought in times of geopolitical tension, partly because Japan has a big current account surplus, and it being the world's biggest creditor nation, there is an assumption Japanese investors may repatriate their foreign holdings in times of heightened global uncertainty.

Railroad stocks have shown a strong move to the upside on the day, driving the Dow Jones Railroads Index up by 1.3 percent.

In currency markets, the dollar dropped as low as 109.74 yen, its lowest in about two months, from 110.39 yen in NY and the upper half of the 110-yen range in Tokyo earlier Tuesday.

Gold added to early gains, and the dollar pulled back, following the release of USA data showing a cooler reading for inflation at the wholesale level. Australia's S&P/ASX 200 edged down almost 0.1 percent to 5,760.90, while South Korea's Kospi fell 0.5 percent to 2,357.84.

Sanctions may not halt North Korea nuclear program
In what might be a last-ditch effort at reaching a diplomatic solution with an increasingly volatile North Korea, the U.N. China, North Korea's biggest ally and trade partner, backed the sanctions in a bid to spur dialogue.

The sell off in stocks and flight to safety gathered pace in early European trade as the already cool relationship between the United States and North Korea turned icy following hard-nosed rhetoric from both nations.

The Korean won continued to fall versus the dollar, down 0.13 per cent to 1,143.5 on Friday for a 1.6 per cent decline on the week.

Markets are now awaiting U.S. consumer price data for July, due later today.

Stocks in Tokyo, one of the nearest capitals to Pyongyang, fell 1.3% to 19,738.71, while in Europe, the FTSE 100 lost 0.6% in morning trade, and the CAC 40 in Paris fell 1.2%.

Baker Avenue's Lip said the US market was higher due to "bargain hunters", but "there's more room for the market to come down".

North Korea Threat: US, Japanese troops prepare for war
The THAAD systems stations in South Korea could track the launch of the missiles, but are unlikely to be able to shoot them down. The positions of warships are kept secret, but the USA and Japan could reposition its forces to defend the ocean close to Guam.

The euro held steady at $1.1776.

"This inflation data for the month was not good".

S&P 500 e-mini futures were down 0.2 percent, while the dollar dipped 0.2 percent against its perceived safe-haven Japanese counterpart to 110.12 yen.

The yield on the 10-year Treasury bond fell to 2.2% and is approaching its lowest level of the year. U.S. gold futures for December delivery rose 0.2 per cent to $1,281.90 per ounce on Thursday.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in U.S. crude inventories, leaving prices volatile. Northern Star Resources was up 3 per cent, while Evolution Mining rose 2 per cent, Newcrest Mining gained 2.3 per cent and Resolute Mining rose 2.1 per cent. Westgold Resources was the biggest gainer, rising 6.6 per cent.

Wall St set to open flat after inflation data, N.Korea tensions
The data comes amid tepid inflation that has remained below the Federal Reserve's 2 percent target, despite low unemployment. Wilmar International slipped 6.4 per cent or 22 cents to $3.20; Hongkong Land lost 2.1 per cent or 16 USA cents to US$7.34.

Related news:

Hot News

isis-killer-beheading-video-story-top Fresh floods affect over 65000 in Assam
Aug 12, 2017 - 22:31
In eastern Assam's Tinsukia district, authorities ordered 225 schools to remain shut as the situation worsened. The district administration has opened relief camps in many parts to provide shelter to thousands of people.

isis-killer-beheading-video-story-top Sonia calls opposition meeting on Friday, Sharad invited
Aug 12, 2017 - 22:28
He is also organising a conclave in New Delhi on August 17, which will be attended by opposition leaders. The 18 Opposition parties had earlier chose to meet once a month to discuss various crucial issues.

isis-killer-beheading-video-story-top Trump opens door to investigating China's "theft" of USA intellectual property
Aug 12, 2017 - 22:11
The American companies "should not be forced or coerced to turn over the fruits of their labor", one official said. The process can bypass World Trade Organization procedures for adjudicating grievances.

isis-killer-beheading-video-story-top Masonite International Corporation (DOOR) Shares Bought by US Bancorp DE
Aug 12, 2017 - 22:07
Gilder Gagnon Howe Limited Liability Corp has 252,437 shares for 0.33% of their portfolio. 103 are owned by Quantbot Techs L P. The stock of Masonite International Corp (NYSE:DOOR) has "Hold" rating given on Friday, August 21 by Stifel Nicolaus.

HSBC Holdings PLC (HSBC) Downgraded by BidaskClub
Aug 12, 2017 - 21:56
Seven equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company's stock. On average, equities research analysts forecast that Ryanair Holdings PLC will post $7.58 EPS for the current fiscal year.

isis-killer-beheading-video-story-top Markets extend losses as Korea tensions escalate
Aug 12, 2017 - 21:56
Japan is the world's biggest creditor country and there is an assumption that investors there will repatriate funds in a crisis. The dollar index.DXY, which tracks the greenback against six rival currencies, was down 0.17 percent to 93.391.

isis-killer-beheading-video-story-top Gold up for fourth straight session on North Korea tensions
Aug 12, 2017 - 21:51
The dollar held steady at 110.02 yen, having pulled up from Wednesday's low of 109.56 yen, its lowest level since June 15. Geopolitical tension persisted after a North Korean army commander said "sound dialogue is not possible" with U.S.

isis-killer-beheading-video-story-top European states recalled eggs over contamination scandal
Aug 12, 2017 - 21:41
The British Egg Industry Council said consumers concerned about the safety of their food should look for British Lion eggs. The substance can damage people's kidneys, liver and thyroid glands if eaten in large quantities.

isis-killer-beheading-video-story-top Conte desperate to improve Chelsea squad
Aug 12, 2017 - 21:25
The Premier League champions have signed four players this summer but have sold several squad players from last season's title win.

isis-killer-beheading-video-story-top Dota 2-Playing Robot Beats the Pros at The International
Aug 12, 2017 - 21:21
The next step for OpenAI is to build a team of Dota bots that can both compete, and partner with, human players. Sumail, also a TechJuice 25 under 25 , is one of the Time Magazine's top 30 influential teenagers.

Analysts Opinions on: Physicians Realty Trust (DOC)
Aug 12, 2017 - 21:12
General Motors Company (NYSE:GM) shares were trading lower by -0.31 percent ($-0.11) at $35.28 a piece in Wednesday's session. Year to date Physicians Realty Trust (NYSE:DOC) is -5.49%, -9.45% over the last quarter, and -5.93% for the past six months.

isis-killer-beheading-video-story-top Salma Hayek, 50, Shows Off Her Incredible Bikini Body in Outdoor Shower
Aug 12, 2017 - 20:53
Jamas se debe cocinar y cargar a un bebé", a Spanish-speaking user added, which translated into English means "How risky ". If I cook, you'll have a structure fire. "Lord help us all".

isis-killer-beheading-video-story-top Soldier, civilian killed in ceasefire violation across LoC by Pakistani troops
Aug 12, 2017 - 20:41
However, in the exchange of fire, Naib Subedar Jagram Singh Tomar was grievously injured and later succumbed to his injuries. One woman was killed in Pakistan shelling along the Line of Control in Jammu and Kashmir's Medhar sector early on Saturday.

isis-killer-beheading-video-story-top The Case for and Against Fidelity National Information Services, Inc. (FIS)
Aug 12, 2017 - 20:36
With 78,600 avg volume, 27 days are for Chemocentryx Incorporated (NASDAQ:CCXI)'s short sellers to cover CCXI's short positions. In other news, CFO Anthony Park sold 138,941 shares of Fidelity National Financial stock in a transaction on Friday, May 19th.

isis-killer-beheading-video-story-top Dead, 2 Injured in Conn. Small Plane Crash
Aug 12, 2017 - 20:30
The FAA says the Cessna took off this morning from Danbury Airport and was landing at Candlelight Farms when the crash happened. The plane had departed from Danbury Municipal Airport and crashed at the end of Runway 17-35 at Candlelight Farms Airport.