North Korea nerves rattle stocks, lift gold, yen

Xavier Trudeau
Août 13, 2017

Geopolitical concerns contributed to the continued strength among treasuries amid an ongoing escalation in tensions between the USA and North Korea.

Trump suggested in remarks on Thursday that his comments threatening North Korea with "fire and fury" may not have been tough enough.

"Meanwhile, Trump knows that a conflict in North Korea could risk a huge amount of casualties and a huge humanitarian crisis on China's doorstep".

With the rhetoric rumbling on, Europe's top-rated German bond yield held near six-week lows.

With Japanese markets closed for a public holiday, Hong Kong led the downward charge in Asia-Pacific as the Hang Seng lost more than two percent.

Australian stock futures slumped early on Friday and other Asian markets looked set to follow as tensions ramped up between the U.S. and North Korea, sending investors into less risky assets such as gold, the yen and USA government bonds.

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".

South Korea's Kospi fell 1.8% to an 11-and-a-half-week low, taking its losses this week to 3.2%.

The euro was down 0.3 percent at just over $1.17 and nearing a two-week low, while the New Zealand dollar tumbled a full 1 percent as its central bank head bluntly said he wanted it lower.

In currencies, the yen strengthened 0.64 percent versus the greenback at 109.37 per dollar.

Spot gold prices were little changed at $1,286.05/oz, after touching a two-month high earlier.

The tension and severity of the potential consequences of further escalation have effected equities, thereby making the safe-haven of gold attractive to investors. USA crude (CLc1) shed 10 cents to $49.07 a barrel.

The recent resilience of data on the United States economy has not dampened the latest climb, despite depressing prices earlier in the week as reports returned high employment figures ahead of further USA inflation information this week.

The Toronto Stock Exchange's S&P/TSX composite index fell 39.02 points, or 0.26 percent, to end at 15,217.33.

The Labor Department said its producer price index for final demand edged down by 0.1 percent in July after inching up by 0.1 percent in June. But for the week the S&P 500 lost 1.3 percent, its worst weekly showing since March.

JAPAN MACHINERY DISAPPOINTS: Orders for machinery in June, considered a leading economic indicator, were slower than analysts had forecast and at their weakest since May 2016.

Australian stock futures dropped 1.2 percent and New Zealand stocks slid 1.1 percent.

Markets are now awaiting United States consumer price data for July, due later in the session.

In commodities, US crude fell 0.67 percent to $49.23 per barrel and Brent was last at $52.58, down 0.23 percent on the day.

Shares of Snap (SNAP) are also seeing pre-market weakness after the parent of Snapchat reported a wider than expected second quarter loss on revenues that came in below expectations.

D'autres rapports CampDesrEcrues

Discuter de cet article

SUIVRE NOTRE JOURNAL