Stocks fall for third day as U.S., N. Korea tensions rattle markets

Xavier Trudeau
Août 13, 2017

Simmering tensions between the USA and North Korea weighed on the market for the third day in a row.

In Toronto, the composite index S&P/TSX has lost 143,08 points, or 0.9 %, to close at 15 074,25 points, the decline being nearly generalized to all sectors.

The Nasdaq Composite was up 34.61 points, or 0.56 percent, at 6,251.48. The Russell 2000 index of smaller-company stocks gave up 18 points, or 1.3 percent, to 1,378.

The New York stock Exchange has chained three consecutive sessions of decline in response in a face-to-face meetings between the United States and North Korea.

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States.

"I will tell you this, North Korea better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world", Trump said.

Market analysts expect that the pullback in stocks due to the increasingly aggressive tone in exchanges between Washington and Pyongyang will continue, although investors hope that the selling will not escalate to a correction - a decline of 10 percent or more. Titled "Reckless game over the Korean Peninsula runs risk of real war", the editorial suggested China will stay neutral if North Korea strikes first, but will intervene if the U.S.is the first mover. The stock fell another 2 cents, or 0.4%, to 5.12 Friday.

Tech shares sank by 2.2%, with the financials, consumer-discretionary, energy and industrials sectors all falling at least 1.3%. Bank of New York Mellon fell $1.74, or 3.2 percent, to $52.30, while Citizens Financial Group slid $1.11, or 3.2 percent, to $33.92. Banks and retail chains were also among the big decliners.

Germany's DAX dropped 0.3 per cent to 12,117.07 and the CAC 40 of France lost 0.3 per cent to 5,132.22. The stock fell $2.35 to $20.68.

The market slide accelerated slightly in the last half-hour of trading as President Donald Trump denounced North Korea's nuclear program.

Shares Snap fell 1.94, or 14%, to 11.83 after the Snapchat parent reported earnings late Thursday that missed analyst forecasts.

The Dow slid as declines in Apple and Goldman Sachs, down 2.3% and 1.7% respectively, outweighed gains in McDonald's and Coca-Cola, up 1.4% and 0.5% respectively. Rival TripAdvisor also slumped after its latest quarterly report showed that online and transaction revenue growth fell sharply. South Korea's KOSPI fell 1.8 percent to almost a three-month low. Yields on bonds move inversely to their price.

CURRENCIES: The dollar slipped to 109.98 yen from 110.06 late Wednesday in Asia.

OIL: The price of oil gave up early gains.

OIL: Benchmark U.S. crude lost 24 cents to $48.37 per barrel on the on the New York Mercantile Exchange while Brent crude, used to price global oils, declined 20 cents to $51.70 per barrel in London. Brent crude, used to price worldwide oils, added 21 cents to $52.91. Copper rose 4 cents to $2.94 a pound. The euro rose to $1.1774 from $1.1752.

MARKETS OVERSEAS: Major indexes in Europe slumped. Tokyo's Nikkei 225 tumbled 1.3 percent, while Seoul's Kospi fell 1.1 percent.

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