Stock markets extend losses at open

Judith Bessette
Agosto 12, 2017

"This is mainly due to the fact that in the event of a crisis involving the United States directly, investors are more likely to seek refuge in an asset like gold which bears no country risk and also benefits when the dollar depreciates", Gambarini writes.

But if relations between North Korea and the USA worsen stock market losses could deepen.

The sabre-rattling - sparked when President Donald Trump stunned the world with an apocalyptic warning to unleash "fire and fury" on North Korea - continued Thursday as Pyongyang mocked the USA leader as "bereft of reason".

"People are concerned that a shouting match could lead to someone pressing a button", said Irwin Michael, portfolio manager at ABC Funds.

"Subdued participation this year and lean positioning suggests that market participants would have to play catch-up on a break higher", she said in a note. "We do believe the trend is still up". Core prices had also been expected to climb by 0.2 percent. Shares of Macy's lost 10% and Kohl's fell 5.8%.

In other precious metals, silver was almost flat at $16.90 per ounce after hitting its highest since June 15 earlier in the session.

North Korea said it was considering plans to fire missiles at Guam, a USA -held Pacific island, after President Trump's warning on Tuesday.

"The overnight Korean news has prompted some unwinding of the cheapening trades on the franc that has been going on for some time and though positioning is not stretched by any means, the franc's strength may have room to run", said Timothy Graf, head of macro strategy at State Street Global Markets in London.

"There was some skittishness earlier but then some buyers stepped in", he said.

As is often the case in such circumstances, many have looked for assets that are seen as less risky, one of which is gold.

Man City players happy with three at the back, says Kompany
But we can not forget that when we do something better than last season it's because we've been one year together. But I think it is unsustainable. "But the season that just happened wasn't just about what happened in our box".

But the prospect of hefty losses on Wall Street stocks was averted when USA secretary of state Rex Tillerson said there was "no imminent threat of war" and that Americans could "sleep well at night".

"You'd need to see something more tangible than just rhetoric for a broader pullback", Richard Steinberg, managing director at HighTower Advisors in NY.

Still, the main indexes have not yet recouped losses sustained over a three-day stretch of red ink earlier this week.

CURRENCIES: The euro was down 0.1 percent at $1.175 while the dollar fell 0.6 percent to 109.68 yen. The dollar was down 1.2 percent at 0.9627 Swiss francs, while an ounce of gold was 1 percent higher at $1,275.

The dollar index (.DXY), which measures the USA currency against a basket of other major currencies, fell 0.14 percent. USA gold futures gained 0.50 percent to $1,296.60 an ounce.

Seven of the 11 major S&P 500 sectors were higher, with the technology's 0.36% rise leading the advancers.

Dow e-minis were down 35 points, or 0.16 percent, with 37,467 contracts changing hands at 8:40 a.m. ET (1240 GMT).

Shares of Walt Disney were down 4.23 percent, the biggest drag on Dow, as investors doubted whether the company can succeed with its plan to launch its own streaming services rather than rely on Netflix to reach online viewers. The Nasdaq lost 135 points, or 2.1 percent, to 6,216.

About 6.48 billion shares changed hands on US exchanges on Wednesday compared with the 6.16 billion average for the last 20 sessions.

Outros relatórios LazerEsportes

Discuta este artigo

SIGA O NOSSO JORNAL