ibusinesslines.com
ibusinesslines.com August 20, 2017


Global shares mostly lower on rising unease over North Korea

12 August 2017, 10:55 | Kelvin Horton

A woman walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo on Aug. 9 2017

A woman walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo on Aug. 9 2017

Gold extended gains after data showed U.S. producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

Data storage company Seagate Technology (STX) is posting a standout gain within the hardware sector, climbing by 2.1 percent.

On Friday, an MSCI index of stocks across the globe posted its largest weekly drop since the week before Trump won the USA presidential election in November.

NORTH KOREA: President Donald Trump warned North Korea of "fire and fury" this week in response to recent threats from Pyongyang, which said it was examining plans for attacking Guam, a USA territory in the Pacific with a military base.

While this gave investors some hope after a jittery week, there were still signs of nervousness in choppy late afternoon trading, primarily due to ongoing threats between the United States and North Korea.

The Dow Jones industrial average closed 0.9% lower on Thursday, while the S&P 500 dropped 1.5% and the Nasdaq shed 2.1%.

Elsewhere, the New Zealand dollar NZD=D3 slid 0.9 percent to $0.7273.

Nordstrom shares were up 1.63 percent at $45.60 following the apparel retailer's better-than-expected quarterly same-store sales. Nine of the index's 10 main groups ended lower.


Markets across Asia suffered a bloodbath on Friday (Aug 11) as investors bailed on fears that escalating tensions between the United States and North Korea may boil over into military confrontation.

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 will repatriate funds should a crisis take place.

The dollar was further weighed down on Friday by the soft U.S. inflation data. "If you look at the gold price after the CPI (inflation) data, it tells you that the Fed is not going to be in any rush to increase the interest rate this year", said Naeem Aslam, chief market analyst at Think Markets.

The euro was 0.14 percent higher against the dollar.

Market participants are also nervous about escalating tensions between the US and North Korea.

"On many occasions, we've also heard from the Russians, and from Russian oil producers, that once the deal is complete and free production reigns again that Russia will prime the pump", said Greg McKenna, an analyst at AxiTrader. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.3 basis points to 2.189 percent.

Shares of Snap were off about 15 percent premarket following the social media company's earnings that came below estimates and a slew of price target cuts. Spot gold inched down 0.1 percent to $1,284.64 per ounce as of 0616 GMT, but was set for a weekly gain of over 2 percent.



Other News

Trending Now

Dollar hits eight-week low vs. yen, North Korea tensions spook investors
The single-session equity put/call ratio jumped to 0.83 - the highest since April - and the 21-day moving average rose to 0.65. Come the United Kingdom trading session and a continued sell-off was seen, taking the pair to an eight week low.

Wayne Rooney goal gives Everton victory over Stoke
Only Frank Lampard and Alan Shearer (8) have scored more goals on Premier League opening day than Rooney (7). Brighton and Hove Albion could be about to make a move for Everton's unwanted striker Oumar Niasse.

Flood situation in Assam worsens; 10 lakh people affected in 19 districts
As the Brahmaputra water rises alarmingly, authorities suspended ferry services in Majuli, Dibrugarh and Guwahati . The month-long first wave of floods in July had claimed 82 lives and affected 25.42 lakh people in 29 districts.

Trump warns North Korea that United States is `locked and loaded´
Humphrey described the brinkmanship of nuclear war with North Korea as the reason why the commission needs to be established. Earlier in the week, he had threatened to unleash "fire and fury" on North Korea.

Uber investor sues former CEO Kalanick for fraud
Kalanick resigned in June, yielding to pressure from investors seeking to clean up a toxic corporate culture at Uber. Kalanick meanwhile has vehemently denied the allegations, claiming it to be false and farther away from the truth.

U-19 cricket Asia Cup shifted from Bengaluru to Malaysia
Pakistan, India, Bangladesh and Sri Lanka have earned an automatic qualification. The matches are expected to be held in Gaddafi Stadium, Lahore.

Physicians Realty Trust Shares See a Change of -2.02% This Week
On a one to five ratings scale where 1.0 indicates a Strong Buy, 2.0 indicates a Buy, 3.0 a Hold, 4.0 a Sell and 5.0 a Stong Sell. News articles about Universal Health Realty Income Trust (NYSE:UHT) have trended positive this week, Accern Sentiment reports.