Stocks tumble on North Korea worries

Reuters

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

The Dow Jones Industrial Average .DJI fell 70.4 points, or 0.32 percent, to 22,014.94, the S&P 500 .SPX lost 5.51 points, or 0.22 percent, to 2,469.41 and the Nasdaq Composite .IXIC dropped 31.19 points, or 0.49 percent, to 6,339.27.

Nevsun Resources Ltd offset some of the material group's gains, plunging 16.4 per cent to C$2.75 after the company reported disappointing quarterly results.

In Europe, the Stoxx 600 Index fell 1%.

The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, ended at a session low of 11.11 after rising as high as 12.63.

SIMMERING TENSIONS: North Korea revealed on Thursday a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers.

Stocks tumbled today after President Donald J. Trump said his "fire and fury" comment to North Korea "maybe wasn't tough enough". U.S. Defense Secretary Jim Mattis told Pyongyang it should stop any actions that would lead to the "end of its regime and the destruction of its people".

Significant weakness is also visible among semiconductor stocks, as reflected by the 2.2 percent loss being posted by the Philadelphia Semiconductor Index.

"We are at the end of an intense first-quarter earnings season, and that changes the dynamics or focus for brokers and the buyside going into next week, from one which is more reactionary to the constant flow of results, to one which is more about the bigger picture", said Stefan Worrall, director of Japan equity sales at Credit Suisse in Tokyo. On the Nasdaq, 2,082 issues fell and 669 advanced.

Venezuela's Maduro wants 'personal conversation' with Trump
Opposition leaders and governments around the world have decried the assembly's creation as the consolidation of a dictatorship. He said it was part of a wave of attacks that began Monday when dozens of government and private company websites were hacked.

Wall Street's jitters over North Korea gave investors a chance to pocket recent gains..

US Treasury yields fell on Wednesday, with yields on the benchmark 10-year note hitting a six-week low, as investors reached for safe-haven assets such as government debt.

US crude oil futures settled almost 2 per cent lower at $48.59 a barrel, as Russian Federation considered a future output resumption and the Organization of the Petroleum Exporting Countries boosted its July production numbers. Brent crude, used to price global oils, slid 52 cents, or 1 percent, to $52.18.

The price of gold also surged for the second day in a row as the December bullion contract advanced US$10.80 to US$1,290.10 an ounce.

More than 430 stocks from all US exchanges hit their lowest levels in 52 weeks or more on Thursday, the most for any session since mid-November right after Trump was elected. Copper fell 2 cents to $2.90 a pound.

CURRENCIES: The dollar slipped to 109.48 yen from 109.85 late Wednesday. Humana rose $3.59, or 1.4 percent, to $253.81.

The S&P fell as much as 0.52 percent at its session low. Wall Street was poised for further losses at the opening bell, with Dow futures and the broader S&P 500 futures down 0.3 percent.

"The markets are looking for direction after Wednesday's sharp moves and geopolitical concerns will dominate investor mindsets in the coming days", said Esther Maria Reichelt, an FX strategist at Commerzbank in Frankfurt. Against the yen, the euro last traded at 128.29 yen, down 0.2 percent.

Related News:



Most liked

Tesla: Self-Driving Semi-Trucks On The Way
Auto industry experts have long expected that autonomous vehicle technology will roll out widely in trucks before other vehicles. Daimler, Volvo, and other semi-truck makers have invested in the technology and carried out demonstrations on highways.

City Union Bank posts Rs 140 crore profit
Net NPA has reduced in quantum and the higher net NPA is due to contraction of credit by 9.26 per cent year on year, it said. On the good side, bank cost to income ratio fell to 61.40 per cent for the quarter from 63.62 per cent same period year ago.

Gold settles at 2-month high amid geopolitical tensions
Benchmark US 10-year notes rose 9/32 in price to yield 2.2494 per cent, from 2.282 per cent late on Tuesday. Analysts say some investors have also been looking for an occasion to sell stock due to high valuations.

Paris Saint-Germain put Serge Aurier up for sale
Despite the latest news coming out of France, United still have several issues to overcome before they'll be able to land Aurier. Aurier has outstanding legal issues to overcome first due to an alleged altercation with a police officer past year .

The Premier League broke with tradition to kick off its new season
Man City spent £202 million on five new key players- Benjamin Mendy , Kyle Walker , Bernardo Silva , Ederson and Danilo . He has done so for three clubs, including for the Seagulls in the League Cup in 2008 - the last time the two sides met.

Reverend Richard Coles is the fifth contestant confirmed for Strictly Come Dancing
BBC broadcaster Richard Coles has been confirmed as one of the participants in the upcoming series of Strictly Come Dancing . While an exact start date has yet to be confirmed, around Saturday September 9 seems the likely launch date.

Oxford Circus station evacuated after fire on Tube train
London Fire Brigade posted a picture on Twitter which showed smoke billowing out of the open doors of a train. Tom Richell was about to enter the station as alarms were sounded. 'Police arrived around three mins later.

Tim Tebow Greets Autistic Boy Mid-Game, Then Hits Home Run
Tebow, in the on-deck circle, was approached by then-9-year old Seth Bosch (he has since turned 10). Tebow, who plays minor league baseball now in the Mets farm system, made one fan's day recently.

Sri Lanka foreign minister Ravi Karunanayaka resigns over corruption charges
Local media reports said that some parliamentarians moved a no-confidence motion against Mr. Karunanayake and the resignation came in the wake of it.

Trump promises Afghanistan troop decision soon
He isn't expected to serve another term, which means he won't have to worry about winning votes for the rest of his six-year term. Trump has resisted recommendations by the Pentagon to boost US troop levels in Afghanistan from the current level of 8,400.

Anne Applebaum: Trump's toothless threats endanger us all
The U.S. document reportedly assessed that the North had mastered the ability to fit a nuclear warhead on its long-range missiles. It was also reported that defense secretary Jim Mattis was shocked at the level of low preparedness in USA forces.

'Rhinestone Cowboy' singer Glen Campbell laid to rest in Arkansas
Completed while he was already suffering from the ravages of Alzheimer's , Campbell's final album, Adios, was released in June. Campbell's best-selling single, Rhinestone Cowboy , was released in 1975 and has sold more than five million copies.

NFL Preseason Roundup: Keenum shines for Vikings in win
PENALTIES: Buffalo was flagged 10 times for 106 yards, including a pair of 15-yarders on special teams in the opening 16 minutes. In the battle to be Minnesota's kickoff returner, rookie Rodney Adams got all three attempts Thursday and averaged 21.7 yards.

Paul Manafort, Trump's former campaign chief, drops legal team
Mueller's investigators have sent subpoenas to global banks for information on financial transactions involving Manafort. Probably makes consultant fees from all over the place, who knows ".

Norovirus Outbreak Affects 30 Persons at Official Team Hotel
Botswana's Isaac Makwala is the latest competitor to pull out after the sickness spread through the official competitors' hotel. Public Health England (PHE) confirmed that 30 athletes and support staff were affected and two cases were confirmed of the bug.