North Korea tensions drag down stocks but boost gold

Michael Kors store in Edinburgh

Michael Kors store in Edinburgh Source

MARKETS OVERSEAS: Major indexes in Europe were headed lower.

U.S. President Donald Trump issued a new verbal warning to Pyongyang on Thursday, saying that his previous promise to unleash "fire and fury" may not have been strong enough after North Korea responded with a threat to land a missile near the U.S. Pacific territory of Guam.

"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.

Tension grew after U.S. president Donald Trump refused to step back from his threat to hit North Korea "with fire and fury" or rule out a pre-emptive strike on the rogue nation if it continued to threaten the United States.

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.

The downward momentum for Disney comes after the company reported fiscal third quarter earnings that came in above estimates but on weaker than expected revenues.

Below that level lies another key technical chart support level for the dollar at 108.13 yen, a trough the US currency k plumbed in mid-April.

The report said labor productivity climbed by 0.9 percent in the second quarter after inching up by a revised 0.1 percent in the first quarter. It soared over 2 percent in the previous two sessions, and is set for a weekly gain of 2.25 percent. South Korea's Kospi fell 0.5 percent.

Shortly after the start of trading, the Commerce Department is scheduled to release its report on wholesale inventories in the month of June. Come the United Kingdom trading session and a continued sell-off was seen, taking the pair to an eight week low.

Amit Shah invites Bihar CM Nitish Kumar to join NDA
He added that this was not a personal fight against Nitish Kumar but a fight of principles and to save democracy and brotherhood. Sharad Yadav has called a conclave on "sanjhi virasat bachao" (save composite culture) at Constitution Club in the capital.

"More likely than anything else, the price action was a function of an overextended US equity market that has been in need for a healthy correction off record highs", LMAX Exchange analysts said in a morning note. Futures pointed to further declines on Wall Street, with S&P 500 futures down 0.3 percent at 2,465.70 and Dow futures falling 0.2 percent to 21,986.00.

Thin liquidity could also amplify market moves, she added, with markets in Singapore closed for a public holiday and many market participants in Japan taking time off this week ahead of a public holiday on Friday.

Shares of Snap (SNAP.N) ended down 14 percent after hitting a record low following a miss on revenue and daily active users.

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.

Nvidia fell $7.37, or 4.3 percent, to $164.74, while Advanced Micro Devices gave up 71 cents, or 5.5 percent, to $12.12.

In commodities trading, crude oil futures are rising $0.36 to $49.53 a barrel after slipping $0.22 to $49.17 a barrel on Tuesday.

Gold was up USD3 at USD1293 an ounce, adding to 2-month highs.

The euro stood little changed at $1.1762.

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