Stock Futures Lower Again as North Korea Tensions Intensify

Isaac Cain
August 13, 2017

A Reuters Datastream index of more than 7,000 stocks across the globe saw its market capitalization drop from a record high $61.36 trillion on Monday to $60.43 trillion at the close on Thursday.

Stock markets around the world were under pressure on Wednesday amid increased tensions between the USA and North Korea following comments from President Donald Trump, and big entertainment stocks were among the many decliners. The index, which hovered below record highs this week, has slipped more than 3 per cent since Mr Trump said on Tuesday that the USA would unleash "fire and fury" if Pyongyang continued to issue threats.

Japan had said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programmes as Pyongyang's continues missile and nuclear tests in defiance of United Nations sanctions.

In the United Kingdom, the stock of TV giant ITV was down 1.9 percent in early trading, and Sky shares were down 0.5 percent, while Germany's ProSiebenSat.1 fell 1.2 percent.

However, Federal Reserve Bank of New York President William Dudley suggested on Thursday that the central bank was on track to raise interest rates once more as he expects sluggish inflation to rise over the next several months.

The recovery fit a recent pattern of investors using dips to put more money in stocks.

The Dow Jones Industrial Average rose 44.33 points, or 0.2 percent, to 21,888.34, the S&P 500 gained 6.01 points, or 0.25 percent, to 2,444.22 and the Nasdaq Composite added 32.10 points, or 0.52 percent, to 6,248.97.

Macy's shares closed down 10.2 percent and Kohl's fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

More news: Carter: North Koreans convinced of U.S. strike

Shares Snap fell 1.94, or 14%, to 11.83 after the Snapchat parent reported earnings late Thursday that missed analyst forecasts.

Utilities closed up 0.3 per cent, while the materials sector was the S&P's biggest loser with a 0.9-per cent drop.

Investors also drew some encouragement from new government data showing US inflation at the consumer level inched higher last month. Nvidia fell $4.73, or 2.7 percent, to $167.38.

Sterling was last trading at $1.3009, up 0.27 percent on the day.

BONDS: Bond prices rose.

The local currency closed at 1,143.50 won against the USA dollar, down 1.50 won from the previous session's close. The yield on the 10-year Treasury note slipped to 2.21 percent from 2.25 percent late Wednesday.

About 6.22 billion shares changed hands on U.S. stock exchanges, slightly above the 6.15 billion average for the last 20 sessions.

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