Wall St higher but on track for deep weekly losses

Paterniano Del Favero
Agosto 13, 2017

US President Donald Trump's warning to North Korea has given gold momentum; investors are also awaiting US inflation data.

The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, was up 1.03 points at 11.98 points, its highest level in a month.

USA stocks indexes were higher in afternoon trading on Friday, on track to snap a three-day losing streak, as tepid inflation data brought back investors to riskier assets, despite heightened tensions between the United States and North Korea.

While North Korea is likely to remain in focus, a report on consumer price inflation may also attract attention on Friday, with consumer prices expected to rise by 0.2% in July.

"The market has been looking for an excuse to sell off and North Korea and the president gave the market that excuse", said David Schiegoleit, managing director at the U.S. Bank Private Client Wealth Management.

Despite the ongoing turmoil, investors' focus was slowly returning to the U.S. economy after Chicago Federal Reserve president Charles Evans said Wednesday it would be "reasonable" to announce the beginning of a reduction of the Fed's balance sheet next month. The Stoxx Europe 600 benchmark was down 1% (http://www.marketwatch.com/story/european-stocks-face-worst-week-in-9-months-on-us-north-korea-tensions-2017-08-11), while Hong Kong's Hang Seng led the Asian losses with a drop of 2%.

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

Safe havens benefited from the move away from stocks - gold rising again to around $1,290 an ounce after surging 1.3 percent Wednesday - but other risky assets such as oil and copper held their price. It measures the daily stock price movements of 30 large, publicly-owned USA companies.

The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts.

On Friday, the S&P 500 rose 3.11 points, or 0.1 percent, to 2,441.32. The slide deepened after Trump's remarks on North Korea. Eastern time. The Dow Jones industrial average added 41 points, or 0.2 percent, to 21,885. The stock is up 54% so far this year.

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.

The Standard & Poor's 500 index slipped 0.90 points, or 0.04 percent, to 2,474.02. Gold rose 1.2 per cent, while the Swiss franc was on track to post its biggest single day rise in about two-and-a-half years.

The US currency was down 0.3 per cent at 109.94 yen, following a retreat to 109.740, its weakest since June 15th. Germany's DAX was flat, while France's CAC 40 fell 1.1 percent. On the Nasdaq, 1,787 issues fell and 564 advanced.

BONDS: Bond prices rose.

Altre relazioni OverNewsmagazine

Discuti questo articolo

SEGUI I NOSTRI GIORNALE