No need to panic, Guam governor says after North Korea threat

Paterniano Del Favero
Agosto 10, 2017

"I know we woke up to media reports of North Korea's talk of revenge on the United States and this so-called new-found technology that allows them to target Guam", he said".

The Swiss franc, a barometer of risk sentiment, surged 0.6 percent to 0.9688 francs against the USA dollar, reversing a two-week losing streak.

With President Donald Trump warning North Korea of "fire and fury", investors have become concerned that the war of words between Washington and Pyongyang could spiral out of control.

In Europe, France's CAC 40 fell 1.6 percent to 5,135 while Germany's DAX was down 1.3 percent at 12,133.

The Swiss franc jumped on Wednesday and higher yielding currencies such as the Australian dollar tumbled as the latest bout of geopolitical tensions emerging from the Korean Peninsula prompted investors to cut positions.

In currency markets, the Canadian dollar was trading at an average price of 78.71 cents USA, down 0.20 of a U.S. cent.

The dollar index, which measures the U.S. currency against a basket of major peers, slipped 0.1 percent as U.S. Treasury yields fell.

On Tuesday, the Pacific Air Force announced that US airmen have arrived on Guam to conduct bilateral missions with Japan and South Korea in the face of North Korean aggression.

"The market hates uncertainty and that's certainly what we have now", said Ole Hansen, head of commodity strategy at Saxo Bank.

Japan is the world's biggest creditor nation and there is an assumption investors there will repatriate funds should a crisis eventuate. It was last up 1.1 percent at 1.1321 per euro. The yield on the benchmark 10-year U.S. Treasury note fell to 2.255 percent from its U.S. close of 2.282 percent on Tuesday.

Yields on core government debt fell.

The December gold contract was ahead US$16.70 to US$1,279.30 an ounce.

Oil prices edged higher after a report showed USA refineries processed record amounts of crude in the latest week, eating into inventories, although a surprise jump in gasoline stockpiles limited gains.

Elsewhere in commodities, the September crude contract was up 39 cents to US$49.56 per barrel, September natural gas advanced six cents at US$2.88 per mmBTU and the September copper contract declined two cents at US$2.93 a pound. USA gold futures GCcv1 gained 0.09 percent to $1,265.80 an ounce.

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