Wall St rises on inflation data but on track for weekly losses

Xavier Trudeau
Août 13, 2017

The strength on Wall Street was partly due to bargain hunting, with traders picking up stocks at reduced levels following the pullback seen over the past few sessions.

Losses in health care and consumer-focused companies pulled U.S. stocks broadly lower Tuesday, snapping a 10-day winning streak for the Dow Jones industrial average.

US stocks closed lower on Tuesday after Trump's vow to respond aggressively to any North Korean threats triggered a late afternoon selling spree.

NASDAQ measures a number of indices reflecting the reaction of USA's high tech markets and business environments on the country's political and economic developments which have an impact on high tech markets.

Gold hit its highest levels in two months on Thursday as the United States and North Korea exchanged more threats, prompting investors to buy bullion as a safe-haven asset.

London's benchmark FTSE 100 index fell back 1.3 percent, driven by losses in the commodity sector.

But according to ICBC Standard Bank's Yuichi Ikemizu, the dollar is still weak and on a downtrend, which could help gold prices inch higher in the short term.

Earlier in the week, Trump said the US would unleash "fire and fury" on North Korea if it continued to threaten the U.S.

US President Donald Trump's warning to North Korea has given gold momentum; investors are also awaiting US inflation data.

"While it appears that Pyongyang's detailed strike plan against Guam has created a sour backdrop to trading, it's worth noting that US/North Korea tensions aren't having quite the same effect on the DAX and CAC", said Spreadex analyst Connor Campbell. Meanwhile, euro/dollar was 0.2% up, just shy of the 1.18 handle, pound/dollar was flat, having earlier hit a three-week low of 1.2939 and dollar/yen was 0.1% down above the 109 level - the pair fell to 108.72 after the data on US CPI, its lowest since April 20. S&P futures fell 0.2 percent while Dow futures also lost 0.2 percent.

After North Korea claimed Trump is "driving" the Korean peninsula to the "brink of a nuclear war", the president responded with a tweet suggesting the U.S. is prepared to take military action against the communist nation.

At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial Average was up 54.38 points, or 0.25 percent, at 21,898.39, the S&P 500 was up 8.69 points, or 0.35 percent, at 2,446.90.

The pan-European FTSEurofirst 300 index .FTEU3 lost 1.11 percent.

Gold is up 11% so far this year. July's 0.1 percent increase in consumer prices suggests that the Federal Reserve may be less likely to raise interest rates next month.

Canadian Tire Corp Ltd rose 3.4 percent to C$146.65.

Retailers Wal-Mart (WMT), Home Depot (HD), Target (TGT), Staples (SPLS), and Gap (GPS) are also among the companies due to report their quarterly results next week. Hong Kong's Hang Seng was off 0.3 percent. Australia's S&P/ASX 200 dropped 1.2 percent to 5,693.10. The stock fell $169 to $1,879.98.

BONDS: Bond prices rose. The Japanese markets were closed for a holiday.

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