North Korea tensions send dollar to eight-week low vs. yen

Judith Bessette
Agosto 14, 2017

"That reset is being triggered by North Korea geopolitical concern and stretched valuations", said Peter Kenny, senior market strategist at Global Markets Advisory Group in NY.

Almost $1 trillion has been wiped out from global equity markets since Trump's vow on Tuesday to unleash "fire and fury" on North Korea if it threatens the United States.

Keeping up his tough talk, U.S. President Donald Trump told reporters that North Korean leader Kim Jong Un's government should "get their act together" or face the consequences, and suggested that his earlier threat to unleash "fire and fury" on North Korea was too mild.

In Europe, the pan-continental STOXX 600 index lost 0.8 per cent, with falls deepening after reports a vehicle had rammed a group of soldiers in Paris, injuring six. Brighthouse Financial shed $1.05, or 1.8 percent, to $57.45. The price rose 1.3% in the previous session, the biggest gain since mid-May. Against the euro, the dollar is valued at $1.826 compared to yesterday's $1.1772.

The Nasdaq Composite Index climbed 39.68 points, or 0.6%, to close at 6,256.56.

USA gold futures for December delivery rose 0.2 per cent to $1,281.90 per ounce on Thursday.

The 30-year Treasury bond rose 27/32 in price to yield 2.8252 percent, from 2.867 percent late on Tuesday.

Tourist dies after being hit by Vancouver tour bus
First responders retrieved him from under the bus, and were seen performing CPR on him before he was taken to hospital. Afterwards, they were let off one by one to give statements. "I heard the sound, the crash". "It was pretty sad".

"The unpredictable nature of North Korea means it is hard to gauge exactly how likely an attack is, yet given the military power of both nations, there is no surprise we are seeing markets shift out of risk assets and into havens such as the yen and gold", said IG market analyst Joshua Mahony, in a note.

Canada's main stock index turned slightly higher in early trade on Wednesday, as gains for gold miners and energy companies with higher commodity prices offset falls among financials. TMX Group Ltd was up 3.5 percent to C$68.23, while Quebecor Inc added 2.9 percent to C$44.60. In Asia, several indexes closed lower overnight.

J.C. Penney Co. (JCP) slumped 17% after it reported a wider-than-expected second-quarter loss (http://www.marketwatch.com/story/jc-penney-shares-sink-after-losses-exceed-expectations-2017-08-11). The stock lost $5.41 to $101.57.

The major index futures are now pointing to a modestly higher open for the markets, with the Dow futures up by 21 points.

OIL: Benchmark U.S. crude rose 23 cents to settle at $48.82 a barrel on the on the New York Mercantile Exchange. The u.s. central bank, one of whose tasks is to contain the price rise, does not therefore appear to be obliged to accelerate the pace of the slow tightening of monetary that it has committed. Brent crude, the global standard, lost 23 cents to $52.14 a barrel in London.

Meanwhile, the dollar USDJPY, -0.31% fetched ¥109.69, compared with ¥110.31 late Tuesday. While the German DAX Index has inched up by 0.1%, the UK's FTSE 100 Index and the French CAC 40 Index are down by 0.9% and 1%, respectively.

Australian shares were down 1.3 percent, set for a weekly loss of 0.6 percent and Chinese and Hong Kong bluechips lost 1.6 percent and 1.9 percent respectively. Ten-year U.S. yields dropped 4 basis points to 2.242 percent and German equivalents fell 3 bps to 0.44 per cent, their lowest since 30 June.

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