Global stocks shudder on Trump warnings to North Korea

  • Global stocks shudder on Trump warnings to North Korea

Global stocks shudder on Trump warnings to North Korea

Investors are also awaiting U.S. inflation data due later this week for clues on when the U.S. Federal Reserve would begin reducing its $4.2 trillion bond portfolio.

In commodities, US crude CLcv1 fell 0.67 percent to $49.23 per barrel and Brent LCOcv1 was last at $52.58, down 0.23 percent on the day. Stocks in Taiwan, Singapore and other Southeast Asian countries were also lower.

The Toronto Stock Exchange's S&P/TSX composite index was down 39.02 points to 15,217.33 in a broad-based decline that saw many sectors finish in the red while bullion stocks surged almost 1.9 per cent.

South Korea's KOSPI fell 1.8 per cent to an 11-1/2-week low, but its losses for the week are a relatively modest 3.2 percent.

Market sentiment remained largely in risk-off mood on Thursday as the latest escalation of tension between North Korea and the United States showed no sign of dissipating. The Nasdaq composite lost 0.2 per cent, to 6,370.46. They are looking for confirmation that the Fed is sticking with plans for a possible December interest rate hike.

The Russell 2000 index of smaller companies gave up 24.40 points, or 1.7 percent, to 1,372.54.

United States stocks deepened their losses following the latest Trump comments, and the S&P 500 volatility index, known unofficially as the "fear index", rose decisively.

Shares of Snapchat parent Snap Inc.(SNAP) slid 14% a day after the company's earnings missed forecasts (http://www.marketwatch.com/story/snap-ceos-promise-cant-overcome-declining-ad-rates-stock-heads-toward-new-lows-after-earnings-2017-08-10), and the social-messaging company disclosed that average ad prices fell in the second quarter.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors there will repatriate funds should a crisis materialise.

"This has injected the first note of volatility into USA stock markets for some time".

The yen on Friday added to a strong weekly rally against the dollar of close to 1.5 percent, hitting its highest versus the greenback in nearly four months, at 108.73 yen.

U.S. Treasury long-dated yields dropped to six-week lows, pressured by U.S.

Still, the market has had several fits and starts over the past few months.

MSCI's main index of Asia-Pacific shares, excluding Japan, was last down 0.6 percent.

The dollar index was trading 0.2 percent up at 93.73.

Falling crude prices made oil & gas stocks a weight too, dropping 1 percent with Tullow Oil the top faller.

US Defense Secretary Jim Mattis, who often has emphasized the devastating costs of any conflict with North Korea, seemed to back up Trump's tone.

The greenback also came under pressure after New York Federal Reserve President William Dudley cautioned it would "take some time" for U.S. inflation to reach the bank's two percent target, the latest warning price pressures remain muted.