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ibusinesslines.com October 23, 2017


Seoul shares open lower amid tensions over North Korea

13 August 2017, 02:58 | Kelvin Horton

Seoul shares open lower amid tensions over North Korea

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South Korea's KOSPI fell 1.8 percent to an 11-1/2-week low, but its losses for the week are a relatively modest 3.2 percent. Health care companies were among the gainers.

Macy's was down 4.4 percent after the company said its sales continued to decline in the second quarter.

"Japanese equities hadn't been rising much despite positive earnings results, so investors had started jumping at shadows, doubting whether they should really be holdings onto Japanese stocks".

The Dow Jones Industrial Average .DJI ended down 33.08 points, or 0.15 percent, at 22,085.34, snapping a 9-day streak of closing records.

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.

Trump ratcheted up his rhetoric toward North Korea on Thursday, saying it should be "very, very nervous" if it even thinks about attacking the United States or its allies, after Pyongyang said it was making plans to fire missiles over Japan to land near the U.S. Pacific territory of Guam. The stock was the biggest decliner in the S&P 500, losing $166.50 to $1,882.50. While the UK's FTSE 100 Index slid by 0.6%, the German DAX Index slumped by 1.1% and the French CAC 40 Index tumbled by 1.4%.

Away from the geopolitical drama, US inflation data is due at 1330 GMT. The Russell 2000 index of smaller-company stocks gave up 13 points, or 0.9 percent, to 1,396. Netflix also fell, giving up $2.58, or 1.4 percent, to $175.78.

Seagate Technology gained 2.3 percent after investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.57 percent lower, while Japan's Nikkei percent. On the Nasdaq, 1,846 issues fell and 953 advanced favoring decliners. Kohl's also declined, sliding $3.62, or 8.6 percent, to $38.31.


BONDS: Bond prices rose.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.19 percent from 2.20 percent late Thursday. The Dow shed 0.2 percent.

OIL: Benchmark U.S. crude added 39 cents to settle at $49.56 a barrel on the New York Mercantile Exchange.

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

In other energy futures trading, wholesale gasoline was little changed at $1.62 a gallon, heating oil rose 2 cents to $1.65 a gallon and natural gas rose 6 cents to $2.88 per 1,000 cubic feet.

The market's backstop safety asset, gold, edged up to its latest two-month high of $1,288 an ounce.

The December gold contract was ahead $16.70 to US$1,279.30 an ounce. USA gold futures gained 1.63 percent to $1,283.20 an ounce.

Japanese markets were closed for a holiday but the yen powered on, hitting an eight-week high of 108.91 yen to the dollar, adding to its biggest weekly gain since May.



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