North Korea tensions are set to cause a stir on Wall Street

Gladys Abbott
August 12, 2017

The sub-index for techs fell almost 2 per cent. Top automaker Hyundai Motor fell 2.07 percent to 142,000 won.

Australian shares were down 1.5 percent, set for a weekly loss of 0.8 percent.

The Toronto Stock Exchange's S&P/TSX composite index fell 39.02 points, or 0.26 per cent, to end at 15,217.33.

WALL STREET: Losses in health care and consumer-focused companies pulled US stocks lower, snapping a 10-day winning streak for the Dow Jones industrial average. India's Sensex shed 0.5 percent to 31,846.73 and benchmarks in Taiwan and Southeast Asia declined.

President Trump took aim at North Korea again on Thursday, saying that his earlier threat to unleash "fire and fury" may not have gone far enough. He assured that the "people of our country are safe, our allies our safe".

"Although it is considered highly unlikely that this tension will escalate into a nuclear war, the market still needs to see how President Trump will eventually deal with his advocating "fire and fury" against North Korea's threat", said Margaret Yang Yan, market analyst at CMC Markets Singapore.

The US gains helped limit the losses in Europe.

Simmering tensions with North Korea were also weighing on the market in early trading Thursday.

Other precious metals are also registered intraday upticks.

More news: An alarming North Korea report and an explosive exchange

The Labor Department said on Friday its Consumer Price Index edged up 0.1% in July, which was below the 0.2% rise expected by economists polled by Reuters. Sydney's S&P-ASX 200 gained 0.5 percent to 5,773.70 while New Zealand also rose.

He said the crisis provided a "perfect trigger" for a correction at a time when many markets - including the FTSE 100 - were at or around record highs, leaving them vulnerable to a sell-off if investors think it is time to take profits.

"The next Fed rate move is under question and the inflation equation is going to help the doves on the committee". They are looking for confirmation that the Fed is sticking with plans for a possible December interest rate hike. Meanwhile, the euro stood at USD1.1792 at the European equities close, against USD1.1749 on Thursday.

Old Mutual fell 2.3%.

The data included falling auto production and a slide in construction, which follow a general slowdown in the first half of the year. The greatest contributors were investment return, which rose to GBP4.83 billion from GBP3.00 billion, and banking interest, which climbed to GBP2.36 billion from GBP1.61 billion.

Korea's Samsung Electronics fell 2.8% Friday and was down 6.1% on the week.

Domino's Pizza ended down 3.4%.

"Tensions will continue to mount and could eventually develop into a "black swan" event that the markets are not prudently considering", said Steve Hanke, professor of Applied Economics at America's Johns Hopkins University.

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