US, South Korea begin computer-simulated drills amid North Korea tensions
AIADMK merger may come today, governor cancels all other appointments
Plane from Bay Area crashes near popular OR solar eclipse viewing spot
Police call for arrest of four others in connection with Turku attack
Flooding kills at least 700 across South Asia
North Korea talk drags stocks lower; gold, yen rise
13 August 2017, 03:22 | Erica Roy
Gold spikes as N. Korea ignores Trump's 'fire and fury' warning
LONDON, Aug 11 (Reuters) - The damage inflicted on world stocks this week by the escalating war of words over North Korea topped $1 trillion on Friday, as investors again took cover in the yen, the Swiss franc, gold and government bonds.
"What has changed this time is that the scary threats and war of words between the US and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney.
Possibly due to the lack of appetite for risk in the market, the euro suffered on Thursday, down slightly against the dollar by 0.09% at 1.1749, slipping towards a two week low.
The dollar index fell 0.32 per cent, with the euro up 0.42 per cent to US$1.1819.
Speaking live on state television at a forum for Russian students, Lavrov encouraged Pyongyang and Washington to sign up to a joint Russian-Chinese plan, under which North Korea would freeze its missile tests and the United States and South Korea would impose a moratorium on large-scale military exercises.
"This situation is beginning to develop into this generation's Cuban Missile crisis moment", ING's chief Asia economist Robert Carnell wrote in a note. The index closed at its highest level since November 8, when Trump was elected president.
The S&P 500 dropped the most since May and MSCI's gauge of stocks across the globe .MIWD00000PUS lost 1.1 percent in its third straight day of declines, as it pulled further back from all-time highs.
The dollar widened losses against the yen to hit a two-month low.
The Swiss franc and Japanese yen are often sought out in times of geopolitical tension or global financial stress, partly because both countries have big current account surpluses.
In currencies, the yen rose 0.8 percent versus the greenback at 109.2 per dollar (JPY=), the strongest level for the Japanese currency since mid June.
Disappointing U.S. inflation and jobs data have not helped the dollar.
"Gold and silver are higher, thanks mainly to their status as safe-haven commodities".
Benchmark US 10-year notes last rose 6/32 in price to yield 2.1905 per cent, from 2.211 per cent late on Thursday.
After touching a more than two-month high, spot gold last added 0.1 percent to $1,287.18 an ounce.
The dollar weakened after news that US 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.
The Korean won also continued to fall, down 0.45 percent to 1,147.2. It was on course for a weekly rise of about 5%, the biggest such gain since July 2016.
Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in United States crude inventories, leaving prices volatile.
USA crude was down 0.9 percent at $48.16 per barrel, on track for a weekly loss of 2.9 percent. It is poised to end the week down 1.9 percent.
Dow loses more than 100 points amid North Korea tensions
Kohl's and Dillard's also reporting second quarter earnings on Thursday experienced a decline in same store sales. MetLife fell 75 cents, or 1.6 percent, to $47.56, while Charles Schwab slid 69 cents, or 1.6 percent, to $41.33.
Wenger braced for knife-edge Arsenal season
Wenger also dismissed Chelsea's reported interest in Alex Oxlade-Chamberlain, saying he is still firmly in his first-team plans. It remains to be seen if Wenger sticks to playing with three at the back or if he will change and play with two strikers.
Gunmen kill 7 White Helmets volunteers in Syria
They have since gained widespread global renown for their daring rescues, with footage often taken and circulated on social media. They are often the first on the scene after bombings to help those injured and pull survivors from the rubble.