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North Korea nerves rattle stocks, lift gold, yen (KSS, M)

11 Août 2017

The market slide accelerated slightly in the last half-hour of trading as Trump denounced North Korea's nuclear program.

Many markets have climbed to record or multi-year highs, leaving them vulnerable to a sell-off.

"Donald Trump should be relieved of the powers of the presidency at the earliest date".

The FTSE 100 fell by more than 100 points as global investors continued to act on North Korea-related jitters. "His sick mind and reckless conduct could consume the lives of millions".

Spot gold added 0.7 percent to $1,285.70 an ounce.

"The dollar-yen's downside is expected above 108 yen for now".

The Dow Jones industrial average lost 71 points, or 0.3 per cent, to 22,013. The franc was up 1.1% against the dollar at SF0.9639 and was 1.2% higher vs the euro at SF1.1311. The Nasdaq Composite has dropped 1.1% to 6,282.71.

Other markets: Asian markets had another tough day (http://www.marketwatch.com/story/asian-markets-extend-selloff-in-face-of-north-korean-crisis-2017-08-10), while the Hong Kong Hang Seng Index and the South Korea Kospi dropped 2.5% and 3.2%, respectively, for the week.

CMC Markets' chief market analyst Michael Hewson says in his morning markets email on Wednesday: "US markets underwent a bit of a roller-coaster session yesterday with the Dow and S&P500 once again hitting new record highs, as the Dow looked to close at a record for the 10th day in succession before rolling over just after the London close". The news drove investors out of risky assets and into safe-haven assets like gold, U.S. Treasurys and the Japanese Yen.

Against the greenback, the Swiss franc eased about 0.1 percent to 0.9645 per dollar, having surged about 1.1 percent on Wednesday. And certainly, many believe confidence is too high: On a cyclically adjusted price-earnings basis, USA equity valuations have already exceeded the highs seen before the 1929 crash.

Defensive assets drew support from fresh tensions surrounding North Korea after reports that the Pyongyang regime had developed a miniaturised nuclear warhead which could be deployed on a long-range missile.

On Thursday, New York Fed President William Dudley said he expects sluggish United States inflation to rise over the next several months while the hot labor market gets even hotter.

ENERGY: Benchmark U.S. crude lost 23 cents to $48.94 per barrel in electronic trading on the New York Mercantile Exchange. They have soared over 2 per cent in the previous two sessions, and are set for a weekly gain of 2.26 per cent.

City Developments fell 4.5 per cent or 53 cents to $11.14, after posting a 17.9 per cent fall in net profit for the second quarter and announced a new CEO designate after Grant Kelley resigned. It is poised to end the week down 1.9 per cent.

North Korea nerves rattle stocks, lift gold, yen (KSS, M)