U.S. stocks dip as Disney earnings disappoint

Paterniano Del Favero
Agosto 13, 2017

Gold, another classic safe haven asset, was trading at around $1,291 per ounce, up more than two percent this week and near a nine-week high.

"We've had some competing forces play out over the past 12 hours - the United States dollar was stronger off economic data, but that was quickly reversed with President Trump's comments about North Korea earlier today (Wednesday)", said ANZ analyst Daniel Hynes.

U.S. President Donald Trump issued a new threat to North Korea, saying American weapons were "locked and loaded" as Pyongyang accused him of driving the Korean Peninsula to the brink of nuclear war.

U.S. gold futures for December delivery rose 0.2 percent to $1,281.20 per ounce.

He said:"Financial markets are already taking precautions against an escalation with haven buying happening in the Swiss franc, gold and the Japanese yen, though why anyone would want to buy a currency which is on the front line of a possible conflict is beyond me". The market slide accelerated slightly in the last half-hour of trading as Trump denounced North Korea's nuclear program. The S&P 500 and Dow were both coming off record highs.

"The yen is the big story really". Two weeks ago it saw its biggest weakly fall against the euro since the start of 2015. It's experienced the biggest weekly rise since December 2015.

Gold prices have been volatile in the past few weeks. But Mellor notes the rhetoric has reached a "different level".

US stocks plunged on Thursday, as disappointing retail guidance and lingering fears over a North Korea standoff weighed on investor sentiment. Canada Goose Holdings Inc fell 3.6 percent to C$23.16, but the luxury down-coat maker initially jumped more than 7 percent after reporting smaller-than-expected quarterly loss.

Each major index on Wall St was down between 0.5% and 1%.

If tensions with North Korea de-escalate and the USA economy remains on track, it's easy to see how stocks could quickly climb to new heights.

'Of course, it's all come at a time when share markets are due for a correction, so North Korea has provided a ideal trigger'.

Tokyo's Nikkei 225 share index closed down 1.3 per cent at its lowest since June 1 as the strong yen hit exporters, while South Korea's KOSPI index fell 1.1 per cent to seven-week lows. 'Pretty remarkable, perhaps even extraordinary, considering, ' said Tim Ash, strategist at fund manager BlueBay. While the German DAX Index rose by 0.3 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index edged up by 0.2 percent and 0.1 percent, respectively.

Gold fell $2.10 to $1,262.60 an ounce.

Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programs as Pyongyang's continues missile and nuclear tests in defiance of United Nations sanctions. The VIX fell to a new intraday low in late July.

Crude futures meanwhile extended losses on fears of slowing demand and lingering concerns over global oversupply. The Nasdaq climbed about 0.6%, bouncing back from a drop of 2%.

SeaWorld Entertainment slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations.

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.

Politics lifted USA defense stocks.

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