S&P 500, Nasdaq, Dow Fell Lower on August 10 amid Global Tensions

Ann Santiago
August 13, 2017

Reuters data show a 22 per cent perceived chance for a rate hike after the Fed's December meeting.

Markets had earlier stabilised as US Secretary of State Rex Tillerson had tried to ease the tensions, saying he did not believe there is "any imminent threat" to Guam and that diplomacy would prevail. Humphrey said the escalating crisis with North Korea forces Congress to act.

In an apparent response to Trump's tweet, a statement issued by North Korea's official KCNA news agency claimed the president is "driving the situation on the Korean peninsula to the brink of a nuclear war".

"The story today is North Korea and there was nothing in the earnings that was bullish enough to pull people away from focusing on North Korea", said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

"European stocks have suffered greatly today as traders were prompted to cut-and-run due to the escalating tensions between the United States and North Korea". "Gold and silver are higher, thanks mainly to their status as safe-haven commodities".

Markets were also lower in Europe and Asia.

The dollar index .DXY rose 0.23 percent, with the euro EUR= down 0.39 percent to $1.1747. Fashion chain Michael Kors jumped nearly 22 percent, after better than expected results.

Gold prices XAU= , which hit a two-month low on Thursday, were steady at $1,286.16 an ounce, after surging over 2 percent in the past two sessions. The precious metal was up 2.3% on the week.

In mainland Europe, investors were also digesting a suspected terror attack after a vehicle crashed into soldiers outside barracks in Paris, injuring six. The Tokyo Stock Exchange will be closed in observance of Mountain Day. Germany's DAX was flat, while France's CAC 40 fell 1.1 percent.


Stocks in NY were down at the London equities close.

The Dow Jones fell by about 37 points, with Walt Disney adding the most losses, the broader S&P 500 closed around breakeven, and the tech heavy Nasdaq also softened.

Wall Street stocks fell for the second straight session on Wednesday (Aug 9) as worries about US-North Korea tensions rattled investors.

In the latest United States economic data, the Labour Department's Job Openings and Labor Turnover Survey, or JOLTS, showed job openings rose by 461,000 to a seasonally adjusted 6.2 million, a record high. Meanwhile, the dollar fetched Yen109.77, a drop from Yen110.31.

Brent oil was quoted at USD52.25 a barrel at the close on Wednesday against USD52.49 at the same time the prior day.

Oil prices were lifted by a sustained decline in inventories and as Saudi Arabia prepared to cut crude supplies to its prized Asian customers. (JWN) jumped almost 3% in premarket trading after exceeding profit and sales forecasts over its recent quarter.

"The FTSE has carried on where it left off on Thursday, with yet another day of risk-off sentiment seeing investors shift out of equities", said Joshua Mahony, market analyst at IG. Inflation numbers surprised to the downside, leading the dollar to post considerable losses relative to other major currencies within the first minutes of data release. The index dropped to a one-month closing low. It was at its highest level in more than seven months. Copper rose 4 cents to $2.94 a pound.

Investors seemed to focus instead on a lack of growth in emerging markets, as G4S reported a rise in revenue across all geographies except for the Middle East and India. Rival Advanced Micro Devices was also down 2.6 percent. Prudential reports interim results on Thursday at 0930 BST. Quarterly sales estimates of $2.35 billion topped analysts' estimates of $2.1 billion.

NAB lost 1% despite the bank reporting a 5% rise in its third-quarter cash profit.

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