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Gold Climbs As North Korea Concerns Increase

12 August, 2017, 00:19 | Author: Paula Vaughn
  • North Korea Doubles Down With Threat to Strike Guam

Investors' unease over escalating tensions between the USA and North Korea pushed gold and bond prices higher. The Dow lost 36 points or -0.17%, the S&P 500 slipped just -0.04% and Nasdaq fell -0.28%.

We are anticipating the Dow Jones to open 48 points lower at 22,000 and we are calling the S&P 500down 9 at 2465.

The broad-based Stoxx Europe 600 stock index dropped 0.5 percent in early trading, with key indices, such as Britain's FTSE 100, Germany's DAX and France's CAC all down 0.5 percent or more.

Simmering geopolitical tensions put global stock markets under pressure yesterday as Washington and Pyongyang escalated their war of words.

SeaWorld Entertainment slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations.

All three major equity benchmarks stumbled firmly lower on Thursday, with the trifecta of indexes on track to fall in three consecutive sessions in unison for the first time since mid April amid a persistent war of words between the USA and North Korea.

USA stocks felt significant early drag, with the S&P 500 down 0.5% at the open.

The Japanese yen strengthened 0.08 percent versus the greenback at 110.00 per dollar. It rose $15.70, or 1.2 percent, to $1,277.80 an ounce.

Gold hit its highest in nearly two months after Trump added to the geopolitical anxiety by boasting of the strength of the United States nuclear arsenal.

Haley: No reason to think Trump administration won't accept climate change report
Flanagan said the real choices people have to make about whether to support federal climate change policies need to be informed. Across the nation, average temperatures since the 1980s have risen faster than at any time in the past 1,700 years.

The S&P/TSX composite index was down 39.02 points to 15,217.33, with most sectors finishing in the red while bullion stocks surged almost 1.9 per cent.

Declining issues outnumbered advancing ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.47-to-1 ratio favored decliners. "If the Dow drops 1,000 points over a week that might sound like a lot but it's 5%, and then I think it blows over and buyers start talking about next quarter's earnings".

Benchmark U.S. 10-year notes US10YT=RR rose 9/32 in price to yield 2.2494 percent, from 2.282 percent late on Tuesday. Brent crude, used to price worldwide oils, gained 56 cents to $52.70 in London.

Investors reacted by driving up the price of gold and bonds, traditional safe investments.

On the currency front, the U.S. dollar is trading at 109.73 yen compared to the 110.07 yen it fetched at the close of NY trading on Wednesday.

Against the Swiss franc EURCHF=EBS, it fared slightly better and was broadly flat on the day at 1.1319 francs per euro.

Spot gold added 1.2 per cent to US$1,275.60 an ounce.

A separate report showed United States factory gate prices dipped by 0.1% month-on-month in July, in line with the consensus and alongside a flat reading at the "core" level, which was forecast to rise 0.2%.

In a tense situation like this, equity markets can move lower exceptionally fast, and investors don't want to be caught on the wrong side of the markets, so they are getting out now'.

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