Published: Fri, August 11, 2017
Business | By Max Garcia

Swiss franc, yen rise as North Korea tensions brew

Swiss franc, yen rise as North Korea tensions brew

There is keen anxiety in the marketplace after U.S. President Donald Trump on Tuesday warned North Korea there would be "fire and fury like the world has never seen" if the Asian nation keeps threatening the U.S. North Korea responded by saying it may fire a missile toward the U.S. territory of Guam.

The Dow Jones Industrial Average .DJI fell 36.64 points, or 0.17 percent, to 22,048.7, the S&P 500 .SPX lost 0.9 points, or 0.04 percent, to 2,474.02 and the Nasdaq Composite .IXIC dropped 18.13 points, or 0.28 percent, to 6,352.33.

The S&P 500 slid 35.81 points, or 1.4%, to 2438.21.

Stocks in Tokyo, one of the nearest capitals to Pyongyang, fell 1.3% to 19,738.71, while in Europe, the FTSE 100 lost 0.6% in morning trade, and the CAC 40 in Paris fell 1.2%.

Benchmark 10-year notes were last up 12/32 in price to yield 2.201 percent, from 2.242 percent late on Wednesday.

The secondary Kosdaq closed at 642.87, down 8.80 points, or 1.35 percent, from the previous trading day.

ASIA'S DAY: The earlier Asian session was heavily influenced by the sabre-rattling between the USA and North Korea.

Oil prices are holding their own ahead of the U.S open after yesterday's weekly API inventory reported a large drop in U.S crude stocks countered balanced industry doubts that compliance with OPEC-led supply cuts will increase.

Gold hit its highest level in nearly two months after Trump added to the geopolitical anxiety by boasting of the strength of the USA nuclear arsenal. Stocks in the region suffered Thursday on rising geopolitical tensions, with the MSCI Asia Pacific Index hitting its lowest intraday level since July 28.

"The euro has become more correlated to risk in recent weeks and sentiment is still a bit cautious though the euro upside trend is likely to remain intact over the longer term", said Manuel Oliveri, an FX strategist at Credit Agricole in London.

First Quantum Minerals Ltd. (FM.TO) announced Wednesday its intention to suspend operations at its Ravensthorpe nickel operation, in Western Australia, and place it on care and maintenance at the beginning of September 2017 due to the persistently low nickel price.

Gold and other precious metals made strong gains.

CURRENCIES: The euro was down 0.1 percent at $1.175 while the dollar fell 0.6 percent to 109.68 yen. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London. The stock fell $1.10 to $5.14.

In the Dow, declines in shares of Merck and those of DuPont, recently down 0.9 percent and 0.8 percent respectively, outweighed gains in shares of Apple and those of Microsoft, recently up 1.3 percent and 0.7 percent respectively. On Comex, the gold price climbed 0.9% to $1,274.30 an ounce, while silver rose 1.4% to $16.61 and platinum added 0.4% to $976.15.

The U.S. dollar fell to 110.48 yen from 110.72 yen late Monday.

Like this: