Will North Korea rain on Wall Street's endless summer?

Traders on the floor of the New York stock exchange after Donald Trump's US election victory 9 November 2016

The UK's stock market has opened lower as worries over the situation between the USA and North Korea continue to rattle investors.

His comments came in response to North Korea's threat to fire ballistic missiles toward the USA territory of Guam, which is home to US bombers and other strategic assets. Eastern time. The Dow Jones industrial average slid 120 points, or 0.5 percent, to 21,928.

Tokyo's Nikkei index had dropped 1.3% by the time European stock markets opened on Wednesday morning, with similar falls on the German and French bourses.

Shane Oliver, head of investment strategy at AMP Capital in Sydney, said: "What has changed this time is that the scary threats and war of words between the USA and North Korea have intensified to the point that markets can't ignore it".

South Korean stocks extended losses late Thursday morning as North Korea risks weighed on the main index.

United Kingdom stocks headed sharply lower again on Friday, as the escalating tensions between the USA and North Korea rattled investors and helped drive a global selloff.

The pound was unchanged against the dollar at $1.2981 and up 0.15% against the euro at 1.1040 euros.

North Korea had responded to Trump's previous promise to unleash "fire and fury" with a threat to land missiles near the US Pacific territory of Guam.

The dollar was down 0.53 per cent against the yen at ¥109.48 (RM4.30), after briefly dropping as low as ¥109.53. The yield - or interest rate - on a benchmark 10-year US Treasury bill dropped to 2.24%, while a 10-year German bund was yielding 0.43%.

TSX falls 0.94% as oil drops, geopolitical tensions rise
The S&P hasn't moved more than 0.5 percent in one day since July and has fallen more than 1 percent only twice this year. The pan-European FTSEurofirst 300 index lost 1.06 percent and MSCI's gauge of stocks across the globe shed 0.17 percent.

Hong Kong shed more than one percent and Shanghai also closed lower, while Seoul shares continued their sell-off after slumping Wednesday, with the won again softening.

"But now we're seeing increasing rather than diminishing tensions", he said.

METALS: Gold added $10.80, or 0.8 percent, to settle at $1,290.10 an ounce.

"We have not had a 5 percent correction since June 2016".

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in United States crude inventories, leaving prices volatile.

Elsewhere in commodities, the September crude contract was up 39 cents to US$49.56 per barrel, September natural gas advanced six cents at US$2.88 per mmBTU and the September copper contract declined two cents at US$2.93 a pound.

Geopolitical risks can improve demand for assets considered safe-haven investments such as gold.

As a result, Germany's 10-year government bond yields - which move inversely to the price - dropped below 0.40 percent for the first time since June 29, nearly 20 bps below its July peak. The move added to escalating U.S.

"If you look at the gold price after the CPI (inflation) data, it tells you that the Fed is not going to be in any rush to increase the interest rate this year", said Naeem Aslam, chief market analyst at Think Markets.

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