Stocks Claw Back Gains but North Korea Keeps Pressure on

Paterniano Del Favero
Agosto 13, 2017

Update: The FTSE 100 has slumped further into the red amid persisting fears over North Korea tensions, with the sell-off accelerated by a slump in United States markets.

The Standard & Poor's 500 index fell 7 points, or 0.3 percent, to 2,467 as of 10:19 a.m.

"While not necessary unexpected - as the United States had to respond to threats made by North Korea that they will fire rockets due to land just off the coast of Guam soon - new comments by Trump propelled stocks lower".

The Toronto Stock Exchange's S&P/TSX composite index fell 143.08 points to 15,074.25, with almost all of its sectors moving lower.

Strong gains in NY, where the Dow saw repeated record highs up until three day ago, had kept investor optimism high when news of the conflict first broke, Currie said. The Korean won fell against the US dollar. "That did temporarily shake investors' complacency, but we think markets are ready to move higher in the back half of the year, and earnings and economic data are going to drive that".

The Nasdaq Composite .IXIC was up 34.61 points, or 0.56 percent, at 6,251.48.

Stock movers: Henkel fell 3.4% after the maker of Schwarzkopf hair care products, Right Guard deodorant and Persil detergent posted second-quarter organic sales growth of 2.2%, which was below consensus of 3.2%, according to Investec.

MARKETS OVERSEAS: In Europe, Germany's DAX was down 1.1 percent, while France's CAC 40 fell 1.4 percent. The Russell 2000 index of smaller-company stocks picked up 1.69 points, or 0.1 percent, to 1,374.23.

Market bellwether Samsung Electronics Co. backtracked 2.79 percent to 2,231,000 won, and No. 2 chipmaker SK hynix Inc. was down 4.66 percent to 61,400 won.

The price of gold, a universal safe haven asset, has risen almost 3 percent over the past four days, hovering at $1,290 per ounce, its highest since early June.

The U.S. equity market is hovering near record levels and volume has been tepid following the onset of summer.

The consumer price data, which pointed to weak inflation, could cause the Federal Reserve to hold off from raising rates again this year.

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

"U.S. -North Korean military tensions continued to dominate sentiment, pushing U.S. bond yields down and increasing the price of gold", analysts at VTB Capital said in a note. Brent crude, used to price global oils, gained 29 cents to $52.43 in London.

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